CG17917 - Taper relief: anti-avoidance rules: example

An individual acquires an asset in May 1998 for £10,000. In July 1999 she enters into put and call options with a third party. These options can be exercised to oblige the third party to acquire the asset for £10,000 if the value of the asset drops below that amount, or to oblige the holder of the asset to transfer it to the third party for £10,000 if the value of the asset rises above that amount. The period from July 1999 is treated as a period that does not count for taper relief.