114 Consideration for options.U.K.
(1)If, in a case where section 110(8)(b) applies, the increase in the qualifying expenditure is, in whole or in part, attributable to the cost of acquiring an option binding the grantor to sell (“the option consideration”), then, in addition to any increase under section 110(8)(a) or (b), the indexed pool of expenditure shall be increased by an amount equal to the indexed rise in the option consideration, as determined under subsection (2) below.
(2)The indexed rise in the option consideration is a sum produced by multiplying the consideration by a figure expressed as a decimal and determined, subject to subsection (3) below, by the formula—
where—
RO is the retail prices index for the month in which falls the date on which the option is exercised; and
RA is the retail prices index for the month in which falls the date in which the option was acquired or, if it is later, March 1982.
(3)If RO, as defined in subsection (2) above, is equal to or less than RA, as so defined, the indexed rise is nil.
Modifications etc. (not altering text)
C1Ss. 104-114 modified by The Personal Equity Plan Regulations 1989 (S.I. 1989/469), reg. 27(2) (as substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 1998/1869, regs. 1(1), 12)