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    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Treatment of rights or options to acquire shares or units that you paid to acquire either directly from a company or trust or from another person.

    1. Did you acquire the rights or options before 20 September 1985?

    Yes

    Read question 2.

    No

    Read question 4.

    2. Did you exercise the rights or options?

    Yes

    Read question 3.

    No

    Read answer 1.

    3. Did you exercise the rights or options on or after 20 September 1985?

    Yes

    Read answer 4.

    No

    Read answer 5.

    4. Did you exercise the rights or options?

    Yes

    Read answer 3.

    No

    Read answer 2.

    Answer 1

    Any capital gain or loss on the sale or expiry of the rights or options are disregarded.

    Answer 2

    You may make a capital gain or loss on the sale or expiry of the rights or options. This depends on the amount of capital proceeds received.

    Answer 3
    1. The shares or units acquired on exercise of the rights or options are subject to capital gains tax.
    2. The acquisition date of the shares or units is the date of exercise of the rights or options.
    3. The cost base of the shares or units includes the amount you paid for them, plus

      any amount you paid to exercise the rights or options.

    Note: Any capital gain or loss you make from exercising the rights or options is disregarded.

    Answer 4

    Any capital gain or loss on the shares or units acquired from the exercise of the rights or options is disregarded because the shares or units were acquired before 20 September 1985.

    Answer 5
    1. The shares or units acquired on exercise of the rights or options are subject to capital gains tax.
    2. The acquisition date of the shares or units is the date of exercise of the rights or options.
    3. The first element of the cost base of the shares or units includes the market value of the rights or options when they were exercised, plus

      any amount you paid to exercise the rights or options.

    Note: Any capital gain or loss you make from exercising the rights or options is disregarded.

    Last modified: 18 Sep 2009QC 18323