Commentary

C2.816 Company share option plans

Capital gains tax
Capital gains tax | Commentary

C2.816 Company share option plans

Capital gains tax | Commentary

C2.816 Company share option plans

The shares

Any disposal of shares acquired under a company share option plan1 is subject to capital gains tax in the normal way. However, if the individual has acquired the shares as the result of an exercise of an option that was exempt from income tax, his acquisition cost when computing the gains is not market value2 but the actual consideration paid by him3, both for the option and for the shares4. Neither is market value substituted for that consideration when computing the gain on the corresponding disposal of the shares to him (that is,

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