Section 483 | Application of this Chapter where option exchanged for another ^F1

(1)This section applies if—

(a)the employment-related securities option (the “old option”) is assigned or released, and

(b)the whole or part of the consideration for the assignment or release consists of or includes another securities option (the “new option”).

(2)For the purposes of section 479(5) (amount of gain realised by assigning or releasing option) the new option is not to be treated as consideration given for the assignment or release of the old option.

(3)This Chapter applies to the new option as it applies to the old option.

(4)For the purposes of section 480(2) (consideration for acquisition of option) the amount of the consideration given for the acquisition of the new option is to be treated as being the sum of—

(a)the amount by which the amount of the consideration given for the acquisition of the old option exceeds the amount of any consideration given for the assignment or release of the old option, apart from the new option, and

(b)any valuable consideration given for the acquisition of the new option, apart from the old option.

(5)Two or more transactions are to be treated for the purposes of subsection (1) as a single transaction by which one option is assigned for a consideration which consists of or includes another option if—

(a)the transactions result in—

(i)a person ceasing to hold an option, and

(ii)that person or a connected person coming to hold another option, and

(b)one or more of the transactions is effected under arrangements to which two or more persons holding options, in respect of which there may be liability to tax under this Chapter, are parties.

(6)Subsection (5) applies regardless of the order in which the assignments and the acquisition occur.