Finance Act 1980

84 Traded options

(1) Sections 137 and 138 of the [1979 c. 14.] Capital Gains Tax Act 1979 (options) shall have effect with the following amendments, being amendments which exempt traded options to buy or sell shares in a company from the rule that the abandonment of an option is not a disposal and from the restriction of allowable expenditure which applies to wasting assets.

(2) In subsection (4) of section 137 after paragraph (a) there shall be inserted—

“(aa) a traded option to buy or sell shares in a company, or”.

(3) At the end of subsection (9) of section 137 there shall be inserted the words " and in subsection (4)(aa) above, and in section 138 below, 'traded option' means an option which, at the time of the abandonment or other disposal, is quoted on a recognised stock exchange within the meaning of the said section 535. "

(4) In subsection (1) of section 138 after paragraph (a) there shall be inserted—

“(aa) to a traded option to buy or sell shares in a company, or”.

(5) In subsection (2) of section 138 for the words in brackets there shall be substituted the words “(other than an option falling within subsection (1)(a) or (aa) above) ”.

(6) For subsection (4)(a) of section 138 there shall be substituted—

“(a) ' quoted option ' and ' traded option' have the meanings given by section 137(9) above,”.

(7) This section has effect in relation to any abandonment or other disposal on or after 6th April 1980.