fdloa, page-33

Hi Guys,

I will try and explain the CGT event relating to the options.

Firstly if you exercise the option then CGT event C2 is triggered where you effectively dispose of the shares at your cost price.

You don't need to make a gain or a loss for there to be a CGT event.

When you exercise, your new cost base for the shares is the cost of the option plus the exercise price and the date acquired is the exercise date. Your 12mth period for 50% discount starts again for an individual.

Secondly if you dont exercise the option then CGT event C3 is triggered and you have a capital loss being the cost of the option.

Hope this helps.