Finance Bill 2002
Amendment 126
Page: 345 Line: 17
Mr Andrew Smith (Labour, Oxford East)
126
Schedule 26, page 345, line 17, at end insert-
'(4A) In this paragraph "option" has the same meaning as in paragraph 12, apart from sub-paragraph (10).'.
EXPLANATORY NOTE
SUMMARY
1. The purpose of the amendment is to ensure that the definition of "option" in an anti-avoidance rule is robust.
DETAILS OF THE AMENDMENT
2. The amendment makes a minor change to a rule that seeks to counter the shifting of value between connected companies where a company which has been granted an option abandons it without exercising it even though it is valuable. It ensures that, for the purposes of this rule (which is in paragraph 26 of Schedule 26 to the Bill), "option" includes not only a contract where delivery of an asset may take place but also one where it can only be settled by a payment of cash.