SCHEDULES

SCHEDULE 2Returns for disposals of UK land etc

PART 1Returns and payments on account: disposals of UK land etc

13Effect of s.144(2) or 144A(2)(b) of TCGA 1992 when asset sold on exercise of option

1

This paragraph applies if—

a

an option is granted binding the grantor to sell an asset and the grant of the option is a disposal to which this Schedule applies, and

b

the option is then exercised so that, as a result of section 144(2) or 144A(2)(b) of TCGA 1992, the grant of the option is treated as the same transaction as the sale.

2

Despite section 144(2) or 144A(2)(b) of TCGA 1992, the grantor remains subject to the obligations under this Schedule in relation to the grant of the option.

3

In this paragraph references to sale are to be read in accordance with section 144(6) of TCGA 1992.