Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 24 Jan 2024 23:58:57 GMT by Gary Y
Hello, I went into option trading and was a covered call. I had stocks and I granted call options. Say, the stock I bought was 50, and I was forced to sell the stock at 55 (premium received was 3)(neglect the market price as option grantor need to fulfill the right to give stock at certain price) So how should I calculate it? Is that 3 + (55-50) = 8 realized gain? And if the exercise date goes into another accounting year, is that I put this gain into the accounting year that the clearing took place? Thank you
Posted Mon, 29 Jan 2024 12:36:57 GMT by HMRC Admin 19

You can see guidance here:

Tax when you sell shares

Thank you.
Posted Thu, 01 Feb 2024 16:15:35 GMT by Gary Y
Hello, I'm afraid neither apply, because I have stocks and I'm a grantor. The stocks are exercised. I receive premium and also stock capital gain. Do I just treat the profit (premium and appreciation) as a whole? They will be executed by the option clearing limited and I will receive the residual value as a whole.
Posted Fri, 02 Feb 2024 15:42:27 GMT by HMRC Admin 20
Hi Gary Y,
Please refer to HS284 Shares and Capital Gains Tax (2023).
If you still need assistance after reading this, you will need to telephone 0300 200 3310 for advice.
Thank you.

You must be signed in to post in this forum.