Tax and your investments

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21. Share options

A share option is the right to buy a share at a defined price at or between certain dates.

In HMRC's eyes, the disposal of an option, rather than the share over which the option is held, is treated like the disposal of any other asset.

But the taxation of share options is a complicated matter, largely because the terms and conditions attached to a particular option are the determining factor in the tax treatment - they all vary!

Take advice in each case.

1. Keeping it legal 2. How HMRC treats your investment income 3. Keeping records 4. The basis of dividend income 5. Dividend income 6. Interest income 7. Interest on Treasury Stock 8. Capital gains tax basics 9. Base cost 10. Indexation 11. Taper relief 12. Indexation and taper relief - together! 13. Date of acquisition 14. Disposal proceeds 15. Disposal of a holding with a history 16. Takeovers 17. Bonus/scrip issues 18. Share splits 19. Buybacks 20. Rights issues 21. Share options 22. Beneficiaries and minors 23. Calculating your CGT liability 24. Using your annual CGT exemption 25. Transfers between spouses 26. ISAs 27. Delaying capital gains 28. Other tips to reduce CGT liability 29. Conclusion