Tax Planning
Equity and Index options are treated as assets in their own right. The specific tax treatment of certain types of option trades can help to produce situations that may hold some tax advantages in certain circumstances.
Capital Gains Tax Disclaimer
In view of the complexity of tax legislation, whilst we shall endeavour to provide relevant information and assistance in obtaining information, we shall not be liable for the taxation consequences of tax advice given or tax calculations. The attached calculations should be treated as an indication only and we strongly recommend that you consult an independent expert such as your accountant to ensure its accuracy.
Establish a gain or loss for tax purposes (New cost)
Under current legislation, investors are open to risk adverse stock movements during 'the thirty days' if they wish to establish a new cost base either to create a gain or a loss in the current tax year.
Using options to guarantee the repurchase price at the time of sale gives investors the peace of mind that they will not miss out on any significant rise in the share price during the thirty day period.
Secure a price now for the new tax year.
Options may give an investor the ability to create a forward sale, resulting in a guaranteed price but with the sale falling in the new tax year for tax purposes.
For more information on the tax treatment of options please contact bruce.williams@rensburgsheppards.co.uk.
