September brings the return of the property industry… Any subsequent exercise of an option or pre-emption right results in a separate land transaction which SDLT must itself reject. Although it is a stand-alone transaction, it is generally related to the earlier granting of the option or the right of pre-emption. Examples can be found under SDLTM01300A and SDLM01300B. The SDLT1 for the transfer in the exercise of the option should have a consideration of $3,000,000 in question 10 (1.10 online). 3. Once the transfer is complete, the additional LTDS will be due on the $250,000 option fee. This calculation is calculated in the same way as the above, but on the basis of the rates applicable when granting the option on 1 January 2020. The SDLT is 250,000 USD / 3,250,000 usd x 152,000 USD. As $2,000 has already been paid, the charge due is $9,692. Once the purchase is made in accordas with the exercise of the option, the purchase price of $3,000,000 is linked to the option price of $250,000. Question 13 of the performance of the basic transactions for land transfer (question 1.13 on online restitution) is expected to have a related transaction value of $3,250,000.
However, the fact that the granting of an option is related to its exercise often implies that the FA03/S81A grant becomes at risk of being retained or that the initial return must be changed when the option is exercised. There will be a number of circumstances in which the exercise of the option is not related to financial assistance. B, for example, if the option was exercised by a person who is not a party to or is related to a party to the original grant. The effective date of the land transaction resulting from the exercise of the option is the date of the closing of the sale to P Limited or, if it is earlier, the date of the essential benefit. The acquisition of an option and the acquisition of a pre-emption right are real estate transactions and a stamp duty levy (SDLT) may occur. The sale, modification or abandonment of an option or pre-emption right is the acquisition of a paid interest and may also be charged sDLT.