Commentary

C2.1004 Disposal of option

Capital gains tax
Capital gains tax | Commentary

C2.1004 Disposal of option

Capital gains tax | Commentary

C2.1004 Disposal of option

Options are assets for capital gains purposes1. On the disposal of an option by the person entitled to exercise it, other than by exercise (see C2.1008) or abandonment (see C2.1005), the gain or loss is computed in the normal way. Where the option is a wasting asset (see C2.1003), any gain or loss on its disposal is calculated by restricting the allowable expenditure in accordance with the wasting asset rules described in C2.902. Special provisions apply to dealings in futures, traded options and financial options (see C2.1012).

Example

GH paid JKL Ltd £10,000 for an option to purchase

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