Textual Amendments
F1Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20
13(1)This paragraph applies where by virtue of section 144—U.K.
(a)the grant of an option and the transaction entered into by the grantor in fulfilment of his obligations under the option, or
(b)the acquisition of an option and the transaction entered into by the person exercising the option,
fall to be treated as one transaction.
(2)The time of the disposal of any asset disposed of in pursuance of the transaction shall be the time of the following disposal—
(a)if the option binds the grantor to sell, the disposal made in fulfilment of the grantor’s obligations under the option;
(b)if the option binds the grantor to buy, the disposal made to the grantor in consequence of the exercise of the option.
(3)The time of the acquisition of any asset acquired in pursuance of the option, or in consequence of its exercise, shall be the time of the exercise of the option.
(4)Any question whether the asset disposed of or acquired was a business asset at any time shall be determined by reference to the asset to which the option related, and not the option.]