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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Quoted options to subscribe for shares, traded and financial options: introduction

TCGA92/S144 (8), TCGA92/S144A

TCGA92/S144 and TCGA92/S144A apply to options generally including quoted options to subscribe for shares in a company (more commonly called share warrants), traded and financial options. General guidance on options is at CG12300+.

The main differences that apply in the case of quoted options to subscribe for shares, traded and financial options are

  • the owner of the option may get an allowable loss if they let the option expire, see CG55415
  • the wasting asset rules, see CG76700+, do not apply to the acquisition cost of the option, see CG55416.

The terms “quoted option”, “traded option”, and “financial option” are defined for capital gains purposes at TCGA92/144 (8)