Part 7

Employment income: share-related income and exemptions
Chapter 5

Share options

Tax charge on exercise, assignment or release of share option

Amount of gain realised by assigning or releasing option
480
1
The amount of the gain realised by assigning or releasing the share option is—
C - DC
where—
- C is the amount or value of the consideration for the assignment or release, and
- DC is the total of any deductible costs.
2
For the purposes of subsection (1) each of the following is a “deductible cost”—
a
subject to subsection (3), the amount or value of any consideration given for the grant of the share option;
b
in a case within section 477(1)(b) or (c), the amount of any gain realised by a previous holder on an assignment of the share option; and
c
if an amount counts as employment income of the employee under section 526 (approved CSOP schemes: charge where option granted at a discount) in respect of the share option, so much of that amount as is attributable to the shares in question.
3
If section 476 or 477 has already applied to the share option by virtue of an earlier event, so much of the consideration given for the grant of the share option as was deducted in calculating the amount of the gain on that occasion is not a deductible cost.