S.L. 123.55 Art. 38Gains on the assignment or reduction of option or on the transfer of shares acquired under a share option scheme.

(1) When a share option is assigned to or renounced in favour of any person, any gain thereby realised shall constitute a capital gain for the purpose of article 5 of the Act.

(2) Any gain realised from the transfer of shares acquired through the exercise of an option under a share option scheme shall constitute a capital gain for the purposes of article 5 of the Act, and in determining such gain the cost of the acquisition of the shares shall be deemed to be the price which those shares would have fetched if sold in the open market on the date of the exercise of the option.