Commentary

C1.318 Grant of an option

Capital gains tax
Capital gains tax | Commentary

C1.318 Grant of an option

Capital gains tax | Commentary

C1.318 Grant of an option

The grant of an option for the grantee to acquire an asset (a 'call' option) or to dispose of an asset (a 'put' option) is a disposal by the grantor of an asset, namely, the option itself1. The grant of a call option is not a part disposal of the asset concerned as the grantee has no interest in or right over the asset unless and until the option is exercised2.

Except for cash-settled options, the exercise of an option by the grantee or his successor in title is not a disposal3. Special rules apply to

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