Taxation of Chargeable Gains Act 1992

114 Consideration for options[F1: corporation tax].U.K.

[F2(A1)This section has effect for the purposes of corporation tax.]

(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 [F3December 2017]; 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.

[F4(3)The indexed rise is nil if—

(a)RO, as defined in subsection (2), is equal to or less than RA, as so defined, or

(b)the month referred to in the definition of RA in subsection (2) is after December 2017.]

Textual Amendments

F1Words in s. 114 heading inserted (with effect in accordance with Sch. 2 para. 100 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 95(3)

F2S. 114(A1) inserted (with effect in accordance with Sch. 2 para. 100 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 95(2)

F3Words in s. 114(2) substituted (with effect in accordance with s. 26(6)(7) of the amending Act) by Finance Act 2018 (c. 3), s. 26(5)(a)

F4S. 114(3) substituted (with effect in accordance with s. 26(6)(7) of the amending Act) by Finance Act 2018 (c. 3), s. 26(5)(b)

Modifications etc. (not altering text)

C2Ss. 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)