Originally Posted by nickc78
In case anyone is interested I have worked this out, it was simply because I moved the app to my SD card. Not sure if this a well known issue but the same happened with my galaxy s2. Once the app is moved back the widget option returns.
Yes, this is a well known issue!
Apps that have background processes or widgets require to be on internal storage and not on SD card.
Simples! When you remove your SD card the widgets and apps that are stored on SD card will disappear. With apps there is not a problem because they just change the icon to default android icon and become unrunnable. Problem arises with widgets and background processes which just stop and crash your tablet and you don't want that to happen. In order to get your tablet into normal state you would have to reboot it.
It would also be a problem if you would have your widgets on a SD card when booting your tablet. All the widgets wouldn't load because they load before your SD card does, and you would be greeted with empty home screens.