653Shares issued or transferred as a result of exercise of deemed optionU.K.
(1)Subsections (2) and (3) apply if—
(a)the option mentioned in section 652(3) is exercised at any time in the accounting period, and
(b)shares are issued or transferred in fulfilment of the obligations under the option (“the relevant disposal”).
(2)Section 144(2) of TCGA 1992 (exercise of options) applies to the relevant disposal as if the [F1tax-adjusted carrying value] of the option at the time the company became a party to the debtor relationship mentioned in section 652(2) were the consideration for the grant of the option.
(3)So far as it would otherwise apply, section 17(1) of TCGA 1992 (deemed market value consideration) does not apply to the relevant disposal.
Textual Amendments
F1Words in s. 653(2) substituted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 81