Section 147 — Taxation of Chargeable Gains Act 1992: Quoted options treated as part of new holdings.

Quoted options treated as part of new holdings. 147 1 If a quoted option to subscribe for shares in a company is dealt in (on the stock exchange where it is quoted) within 3 months after the taking effect, with respect to the company granting the option, of any reorganisation, reduction, conversion , exchange or scheme of reconstruction to which Chapter II of this Part applies, or within such longer period as the Board may by notice allow—

a the option shall, for the purposes of that Chapter be regarded as the shares which could be acquired by exercising the option, and b section 272(3) shall apply for determining its market value.

2 In this section “ quoted option ” has the meaning given by section 144(8) and “scheme of reconstruction" has the same meaning as in section 136 .