Specific legislation provides that certain disposals which would have been dealt with under capital gains rules, are instead to give rise to income profits or losses. This applies in cases where schemes and arrangements involving the use of options and/or futures are designed to give a guaranteed return. Please see Chapter 12, Part 4 ITTOIA 05 and the Capital Gains Manual at reference CG56200 for more information.
CG56200 - Shares and securities: Futures: artificial transactions in futures/options
For capital gains purposes, an option is a chargeable asset - please see TCGA92/S21(1)(a). Special rules for the capital gains treatment of options can be found at TCGA/S144-S148. The guidance at CG12311 onwards, addresses the capital gains treatment of options in general, while at CG55400 onwards you will find guidance on quoted options to subscribe for shares in a company, traded options and financial options.
HMRC does not generally provide clearance on the taxation consequences of a transaction. Where, however, an individual has considered the relevant legislation and guidance, has not found the guidance they need and remain uncertain of HMRC's interpretation of the tax legislation relating to a particular transaction, they can consider making a non-statutory clearance application. If such an application is made and HMRC accepts that the legislation and guidance does not adequately cover the circumstances outlined, it will supply a written response.
Find out about the Non-Statutory Clearance Service