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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
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CVS: investors and reliefs: effect of a grant of an option

FA00/SCH15/PARA59

If any option is granted over the shares during the qualification period any investment relief attributable to the shares must be withdrawn. This applies both in the case of an option granted by a third party, where its exercise would bind that party to purchase the shares (a put option) and in the case of an option granted by the investing company, where its exercise would bind the investing company to sell the shares (a call option).

Where some of the shares held by the investing company are subject to an option and some are not, the shares for which no relief is available are identified in the same way as they would be if that number of shares were sold (see VCM91280).