The taxpayer had the benefit of option as an employee in his company scheme. He exercised the option and the issue arose as to when the base value of the options were to be valued for capital against tax purposes. The taxpayer argued that they were to be valued at the point where they were exercised, and since they were exercised at market value there would be no capital gain. The revenue contended that they were to be valued at the date they were issued, when they had a nil value.
Held: The taxpayer acquired the options by reason of his employment ‘otherwise than by way of bargain made at arm’s length’. Did this affect the means of valuating the underlying shares? It did. The taxpayer was correct.
Judges:
Mr Justice Lightman
Citations:
Times 24-Apr-2002, Gazette 23-May-2002
Statutes:
Taxation of Chargeable Gains Act 1992 28 17 38 144
Jurisdiction:
England and Wales
Citing:
Appeal To – Mansworth (Inspector of Taxes) v Jelley CA 12-Dec-2002
A non-resident employee had been given share options exercisable at the price of the shares on the New York Stock Exchange at the date of the grant. The Inland Revenue appealed a decision that the option was to be valued as at the date of grant, . .
Cited by:
Appeal from – Mansworth (Inspector of Taxes) v Jelley CA 12-Dec-2002
A non-resident employee had been given share options exercisable at the price of the shares on the New York Stock Exchange at the date of the grant. The Inland Revenue appealed a decision that the option was to be valued as at the date of grant, . .
Lists of cited by and citing cases may be incomplete.
Capital Gains Tax
Updated: 28 June 2022; Ref: scu.170075
