options - taxation, page-2

  1. 11,223 Posts.
    Converting options to shares DOES NOT trigger a CGT event.

    If options are converted to shares the cost bases for CGT becomes the option purchase price plus the conversion cost.

    The 12 month holding period will commence in relation to the shares from the date of purchasing the fully paid shares not the date of the option purchase. Could potentialy be better to sell the options on market trigger a CGT event and access the 12 month discount, then buy fully paid shares at market

    (depending on the lenght of time held, unrealised profit and the price difference between the options and fully paid shares)

    Normal CGT rules apply to the selling of options on the market.
 
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