After section 149 of the M1Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—
(1)This section applies where—
(a)an option is granted on or after 16th March 1993,
(b)the option consists of a right to acquire shares in a body corporate and is obtained as mentioned in section 185(1) of the Taxes Act (approved share option schemes), and
(c)section 17(1) would (apart from this section) apply for the purposes of calculating the consideration for the grant of the option.
(2)The grantor of the option shall be treated for the purposes of this Act as if section 17(1) did not apply for the purposes of calculating the consideration and, accordingly, as if the amount or value of the consideration was its actual amount or value.
(3)Where the option is granted wholly or partly in recognition of services or past services in any office or employment, the value of those services shall not be taken into account in calculating the actual amount or value of the consideration.
(4)The preceding provisions of this section shall not affect the treatment for the purposes of this Act of the person to whom the option is granted.”
Marginal Citations
F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)In section 32A(5) of the M2Capital Gains Tax Act 1979 (expenditure: amounts to be included as consideration)—
(a)for the words “section 185(6)” there shall be substituted the words “ the applicable provision ”, and
(b)at the end there shall be inserted “; and in this subsection “the applicable provision” means—
(a)subsection (6) of section 185 of the Taxes Act (as that subsection had effect before the coming into force of section 39(5) of the M3Finance Act 1991), or
(b)subsection (6A) of that section.”
(4)The M4amendments made by subsection (3) above shall be deemed to have come into force on 1st January 1992 (but shall have effect subject to the repeals made by the Taxation of Chargeable Gains Act 1992).
Textual Amendments
F1S. 105(1)(2) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7)
Commencement Information
I1S. 105 in force at Royal Assent. the amendments made by s. 105(1) are deemed always to have had effect, see s. 105(2); the amendments made by S. 105(3) are deemed to have come into force on 1.1.1992, see s. 105(4)
Marginal Citations