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thank you for the answer, but how is that answer related to my question? My question is related to taxed premium of options in a different fiscal year than the exercise of the option, there is no transfer of assets involved.
I read https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg55536 about how options are taxed when they are exercised but I have a question about how this needs to be reported in the Self Assessment when the writing of the option and the exercise happen on different fiscal years.
Lets suppose the following case,
* Sell call option written on 01/03/2021 - Premium £100
* Exercised on 01/03/2022 - Proceeds from selling the stock £1000
In that case, the Self Assessment for FY20-21 will include the £100 gain from the premium. But, how the exercise needs to be reported?
a) FY21-22 will include £1000 gain from the exercise and the associated sell of the shares as the premium is already taxed and notify this fact in the Self Assessment.
b) FY21-22 will include £1000+£100 (exercise+premium) and then request an amendment of FY20-21 return to set off the premium paid?
Also, I'd like to understand how this affects the CTG for both FYs.
Suppose that FY19-20 had a total gain of £100 (after loses, allowances, etc) which meant a £20 tax.
* Using the previous case a), nothing needs to be done
* Using the previous case b), I'd need to receive £20
Suppose that FY19-20 had a total gain of £0 (after loses, allowances, etc) which meant a £0 tax.
* Nothing will need to be done in any case
Suppose that FY19-20 had a total gain of £0 (before allowances, etc)
* Case a) Nothing will need to be done
* Case b) Will create a loss of £100 for FY20-21
I know I can claim this by selecting OTH in the "If you are making any claims or elections, select the relevant code" box in the SA and add the relevant documents. The question I have, do I need to put in any other box in the SA the amount I'm relieving?
For instance, after filling the SA and doing the calculations I get that the CTG are £1,000. That's exactly the same amount I can use for the relief, but I haven't added that £1,000 in any box in the SA.
Will that relief be recalculated after someone verifies the SA and it will become £0, supposing everything is correct, or should I expect the SA calculations to state that CTG are £0, and therefore, I missed something filling the SA?