Section 653 — Corporation Tax Act 2009: Shares issued or transferred as a result of exercise of deemed option

Shares issued or transferred as a result of exercise of deemed option 653 1 Subsections (2) and (3) apply if—

a the option mentioned in section 652(3) is exercised at any time in the accounting period, and b shares are issued or transferred in fulfilment of the obligations under the option (“the relevant disposal”).

2 Section 144(2) of TCGA 1992 (exercise of options) applies to the relevant disposal as if the tax-adjusted carrying value of the option at the time the company became a party to the debtor relationship mentioned in section 652(2) were the consideration for the grant of the option.

3 So far as it would otherwise apply, section 17(1) of TCGA 1992 (deemed market value consideration) does not apply to the relevant disposal.