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HMRC internal manual

Capital Gains Manual

Options: wasting assets: disposals

TCGA92/S146

An option may be a wasting asset if it satisfies the conditions in TCGA92/S44, see CG76700+. If an option is a wasting asset then any gain or loss accruing on its disposal during the option period is computed by reference to wasted cost, but

  • the straight-line restriction of allowable expenditure provided for in TCGA92/S46 does NOT apply to an option to acquire assets to be used for trade purposes, see CG12360
  • the guidance on the application of the wasting asset provisions to quoted options to subscribe for shares in a company, traded options and financial options is at CG55400+.