Commentary

C2.1010 Traded options

Capital gains tax
Capital gains tax | Commentary

C2.1010 Traded options

Capital gains tax | Commentary

C2.1010 Traded options

The abandonment or other disposal of a traded option is a disposal for capital gains purposes1 and so (unless it is exempt (see C2.1013) or the financial instruments legislation applies, see Division D1.7) it may give rise to a chargeable gain or an allowable loss. In addition, traded options are not wasting assets for capital gains purposes2.

A 'traded option' is an option which, at the time of abandonment or other disposal, is listed on a recognised stock exchange or a recognised futures exchange3. From 6 April 2007 a 'recognised stock exchange' means any market of a recognised

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