Commentary

C2.1008A Cash-settled options

Capital gains tax
Capital gains tax | Commentary

C2.1008A Cash-settled options

Capital gains tax | Commentary

C2.1008A Cash-settled options

Special rules1 cover the treatment of the grantor or grantee on the exercise of a cash-settled option. A cash-settled option is an option whose nature is such that the grantor is liable to make, and the person exercising it is entitled to receive, a payment in full settlement of all obligations under the option2.

In such cases, the grantor of a cash-settled option is treated as having disposed of an asset consisting of the liability to make the payment, with the payment being treated as an allowable cost of making that disposal3. The grant of the option and

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial