Document ID: chunk:federal_register_of_legislation:C2010C00300:clause:3_2
Version: federal_register_of_legislation:C2010C00300
Segment Type: clause
Provision Reference: sch 3 cl 2
Character Range: 14981–16425

2                    Option binds grantor to *acquire a *CGT asset (put option)       For the grantor
                                                                                      The first element of the grantor's *cost base and *reduced cost base for the asset acquired is any amount paid to exercise the option reduced by any payment received by the grantor for the option (or to renew or extend it)
                                                                                      For the grantee
                                                                                      The second element of the grantee's cost base and reduced cost base for the asset acquired by the grantor includes any payment the grantee made to acquire the option (or to renew or extend it)

Note 1: If you granted, renewed or extended an option, CGT event C3 or D2 may happen.

Note 2: Item 1 in the table is modified for certain options granted before 20 September 1985: see section 134‑1 of the Income Tax (Transitional Provisions) Act 1997.

Note 3: Item 1 in the table is modified for shares or rights acquired at a discount (within the meaning of Subdivision C of Division 13A of Part III of the Income Tax Assessment Act 1936) under an employee share scheme—in certain circumstances you can be taken to have paid the market value for an option: see Subdivision 130‑D and section 112‑15.

Income Tax (Transitional Provisions) Act 1997