Considering CSOP

DrEskimo

Hi All,

I've learnt a great deal from this forum and was hoping someone may be able to shed some light on the important things to consider when determining whether to buy company shares under a CSOP.
This was recently made available in the company I recently started working for and trying my best to understand the contract and conditions of the plan.

My current situation is that I am a HRT, I pay 15% into a salary sacrifice pension (along with 5% from employer), I pay in a regular monthly amount into a S&S ISA (multi-asset fund), and have decent cash savings, which make up my emergency fund and moving costs for a house move that me and my partner want to make in the next 6-12months. Current mortgage is about 50% LTV and I am on a variable discount tracker at 0.79%, which I need to renew in November, in case it's helpful in terms of assessing my overall financial position.

My understanding so far is that this scheme allows me to buy shares at a set price, and I can get tax and NI relief on the shares I buy (but will still be liable for CGT upon selling). So essentially I am buying them at ~40-50% discount being a HRT?

I understand that to benefit from the tax/NI relief, I need to stay at the company for 3-years from the option grant date. It is a relatively new start-up healthcare company, and it is unknown at this point whether I would be with the company for 3-years. Generally, what happens if you buy shares under the CSOP and then leave the company before the 3-year period? How would the tax/NI relief be applied? Would I need to inform HMRC to adjust my tax code? I also complete self-assessment, so could that be another option?

Overall, I am on the fence about whether to ignore it, or just to invest a small amount knowing that the price would have to more than halve before I see any loss...have I understood this correctly?

I would be grateful for any pointers on things to specifically look out for that may make the plan particular advantageous.

Cheers.