Commentary

C2.1003 Application of wasting asset rules

Capital gains tax
Capital gains tax | Commentary

C2.1003 Application of wasting asset rules

Capital gains tax | Commentary

C2.1003 Application of wasting asset rules

An option which has a predictable life of 50 years or less is a wasting asset1. Consequently, the cost of acquiring the option is written off over its predictable life on a straight-line basis2.

In relation to a disposal by way of transfer of an option to buy or to sell quoted shares or securities, the option is regarded as a wasting asset the life of which ends when the right to exercise it ends or, if earlier, when it becomes valueless3. Quoted shares or securities are shares or securities which are listed on a

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