Commentary

C2.1005 Abandonment of option

Capital gains tax
Capital gains tax | Commentary

C2.1005 Abandonment of option

Capital gains tax | Commentary

C2.1005 Abandonment of option

The abandonment of the option by the person entitled to exercise it does not constitute a disposal by him1 (save in the excepted cases mentioned below), and, accordingly, the consideration or deposit lost by the grantee does not give rise to any allowable loss. However, there is a disposal by the grantee if he receives a capital sum for abandoning his option; here the disposal is by virtue of the receipt of the capital sum2 and not the abandonment of the option3. The provision that abandonment does not constitute a disposal therefore does not prevent a

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