SDLT—options and rights of pre-emption
SDLT—options and rights of pre-emption

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • SDLT—options and rights of pre-emption
  • What is an option or pre-emption right?
  • Initial grant
  • Exercise of the option—linked transactions
  • Exercise of the option–exchange
  • Notification
  • Assignment, variation or release

This Practice Note looks at the way that options and pre-emption agreements over UK land are treated for stamp duty land tax (SDLT) purposes. Options typically arise in development situations but are also used in other transactions. For more on indirect tax and developments, see Practice Note: Commercial development—indirect tax issues.

SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice Note to 'UK land' or similar expressions in the context of the application of SDLT should be read to exclude any interests in or over land in Scotland from 1 April 2015. For further details, see the LBTT subtopic.

SDLT ceased to apply to any land transaction involving any interest in or over land in Wales from 1 April 2018. From that date, land transaction tax (LTT) applies to such transactions, subject to transitional provisions. Consequently, references in this Practice Note to 'UK land' or similar expressions in the context of the application of SDLT should be read to exclude any interests in or over land in Wales from 1 April 2018. For further details, see the Wales: LTT subtopic.

What is an option or pre-emption right?

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