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HMRC internal manual

Stamp Taxes on Shares Manual

From
HM Revenue & Customs
Updated
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Derivatives: introduction to options: specified date

The majority of option contracts (see STSM112040) that are issued specify an end date and time for which the rights under an option can be taken up, after which the option will lapse.

The terms of an option may permit the holder to ‘exercise’ ( see STSM112050) his rights under the option contract and purchase/sell the underlying security, which includes stocks and shares, anytime from the date of issue of the option, to the date when the option period expires.