PART 2

THE TAX AND KEY CONCEPTS
CHAPTER 3

PARTICULAR TRANSACTIONS

Options etc.

Options and rights of pre-emption
15
1
The acquisition of—
a
an option binding the grantor to enter into a land transaction, or
b
a right of pre-emption preventing the grantor from entering into, or restricting the right of the grantor to enter into, a land transaction,
is a land transaction distinct from any land transaction resulting from the exercise of the option or right.
2
They may be ““linked transactions”” (see section 8).
3
The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge the grantor's obligations under the option in some other way.
4
The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable).
5
Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.
S. 15 in force at 1.4.2018 by S.I. 2018/34, art. 3