C1C2Part 7Derivative contracts
Annotations:
Chapter 7Chargeable gains arising in relation to derivative contracts
Issuers of securities with embedded derivatives: deemed options
653Shares issued or transferred as a result of exercise of deemed option
1
Subsections (2) and (3) apply if—
a
the option mentioned in section 652(3) is exercised at any time in the accounting period, and
b
shares are issued or transferred in fulfilment of the obligations under the option (“the relevant disposal”).
2
Section 144(2) of TCGA 1992 (exercise of options) applies to the relevant disposal as if the carrying value of the option at the time the company became a party to the debtor relationship mentioned in section 652(2) were the consideration for the grant of the option.
3
So far as it would otherwise apply, section 17(1) of TCGA 1992 (deemed market value consideration) does not apply to the relevant disposal.
Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)