Commentary

C2.1002 Put, call and double options

Capital gains tax
Capital gains tax | Commentary

C2.1002 Put, call and double options

Capital gains tax | Commentary

C2.1002 Put, call and double options

The capital gains tax provisions relating to options apply equally to 'put' options, whereby the grantee is entitled to sell an asset to the grantor; 'call' options, whereby the grantee is entitled to buy an asset from the grantor; and double options, whereby the grantee is entitled both to buy and to sell. A double option is treated for capital gains tax purposes as consisting of two separate options, one binding the grantor to sell, the other binding him to buy, and half of the consideration given for the option is treated as given

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