Taxes Consolidation Act 1997 Schedule 9 paragraph 7

Time of change in ownership

Paragraph 7 of Schedule 9 determines the timing of a change of ownership where shares or other property were acquired under a contract, option or assignment.

• Where shares or other property relevant to a change of ownership were acquired under a contract, option or assignment, the acquisition is treated as taking place when the contract was made or assigned — not when the shares were actually transferred.
• A person who exercises an option to purchase shares is treated as having acquired the shares at the time they acquired the option.
• This timing rule applies to contracts, options and assignments of the benefit of contracts.
• The rule does not apply to contracts made before 16 May 1973.