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A taxpayer has enquired whether a commission paid to an intermediary can reduce the capital gain arising from granting a call option. The DGT has ruled that such a commission is not deductible against the income from the option itself, but is deductible against the gain from the subsequent transfer of the property.
This ruling clarifies the tax treatment of intermediary costs, distinguishing between income derived from the option agreement and gains from the property transfer.
The tax team reviews your specific situation.
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