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HMRC internal manual

Employment Related Securities Manual

HM Revenue & Customs
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CGT Interface

The cost of the securities is

  • anything paid for the option (or - except for approved schemes - the market value of the option if granted before 28 November 1995),
  • the exercise price paid for the shares, and
  • any amount on which income tax was paid when the option was exercised.

Shares acquired by exercising an option are treated as acquired on the date the optionis exercised, except where acquired under an EMI option (see CG56440 et seq).

For options acquired before 10 April 2003, the market value rule applies and the cost of the shares is their market value at the time the option was exercised (see CG56305).