HMRC have updated their guidance in the Capital Gains Manual in relation to “Quoted options to subscribe for shares, traded and financial options: losses” (TCGA 1992, s. 144(4)).
The amended guidance now reads as follows:
“The main difference between a quoted option to subscribe for shares, traded options and financial options, and other options is that the abandonment of the option is treated as a disposal of the option. This means that if the owner of the option allows the option to expire they may be entitled to an allowable loss at the date of abandonment. As the disposal consideration is nil the loss will be the amount paid to acquire the option.
For the quantification of losses, see CG15800.”
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Written for accountants and other tax advisers at an intermediate level, Capital Gains Tax is built firmly on a foundation of statutory rules and case law principles. It is illustrated throughout with practical examples, and most chapters include a summary of pitfalls and planning points.