Taxation of Chargeable Gains Act 1992

[F1[F2 Put options and call optionsU.K.

Textual Amendments

F1Sch. 5B inserted (with effect in accordance with Sch. 13 para. 4(4) of the amending Act) by Finance Act 1995 (c. 4), Sch. 13 para. 4(3)

F2Sch. 5B paras. 10-15 and cross-headings inserted (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 35

12(1)Sub-paragraph (2) below applies where an individual subscribes for eligible shares (“the shares") in a company and—U.K.

(a)an option, the exercise of which would bind the grantor to purchase such shares, is granted to the individual during the relevant period; or

(b)an option, the exercise of which would bind the individual to sell such shares, is granted by the individual during the relevant period.

(2)The shares to which the option relates shall be treated for the purposes of this Schedule—

(a)if the option is granted on or before the date of the issue of the shares, as never having been eligible shares; and

(b)if the option is granted after that date, as ceasing to be eligible shares on the date when the option is granted.

(3)The shares to which the option relates shall be taken to be those which, if—

(a)the option were exercised immediately after the grant, and

(b)any shares in the company acquired by the individual after the grant were disposed of immediately after being acquired,

would be treated for the purposes of this Schedule as disposed of in pursuance of the option.

(4)Nothing in this paragraph shall prejudice the operation of paragraph 11 above.

(5)An individual who acquires any eligible shares on a disposal within marriage [F3or civil partnership] shall be treated for the purposes of this paragraph and paragraphs 13 to 15 below as if he subscribed for those shares.]]

Textual Amendments