Updated guidance and draft legislation from HMRC regarding Pisces
The UK government has proposed an amendment to the Enterprise Management Incentive (EMI) and Company Share Option Plan (CSOP) options, aiming to allow the acquired shares to be sold immediately on the TradingView platform without losing their tax-advantaged status. This proposal was first introduced in March 2023.
TradingView is a new platform for secondary trading of private company shares on an intermittent basis. The updated legislation, which will be published in due course, also addresses the application of the readily convertible asset (RCA) rules in relation to trading on TradingView and private company shares generally.
HMRC has updated its technical note on the tax implications of employees trading shares on TradingView, first published in the Spring Statement 2025. The updated technical note clarifies how existing CSOP and EMI agreements can be amended to include TradingView, with specific reference to the need for TradingView to be included as a specific exercise event.
For new awards intended to be exercisable on a TradingView trading event, specific drafting to cover TradingView should be included in the plan rules and/or option agreement at the outset. To qualify for tax relief, any amendments to existing agreements or new awards intended to be exercisable on a TradingView trading event would need to satisfy the final legislative requirements and be implemented in accordance with the applicable power of amendment set out in the option documentation.
The draft legislation requires that the amendment must be made by written agreement to which the option holder is a party or must be notified in writing to the option holder. It also specifies that options must have been granted before the Finance Bill 2025/2026 receives Royal Assent and amended on or after 15 May 2025. The consultation on the draft legislation closed on 15 September 2025.
The sale of resulting shares on TradingView will not affect the tax-advantaged status of the shares. HMRC has noted that the principles set out in its technical note regarding the RCA rules and trading on TradingView also apply to trading of private company shares generally. It is interesting to see if HMRC updates its wider guidance to reflect the principles set out in its technical note on the RCA rules and trading on TradingView and private company shares generally.
The Royal Assent of the Finance Bill is expected in spring 2026. Private companies exploring TradingView that have granted EMI and CSOP options may wish to review their option agreements and/or plan rules in light of the draft legislation and guidance.
This development could potentially open up new opportunities for private companies and their employees, offering a more flexible approach to share options and secondary trading. Stay tuned for further updates on the publication of the final legislation and any additional guidance from HMRC.
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