You will find an example of options published separately on our website under LBTT Worked Examples. Any subsequent exercise of an option or pre-emption right results in a separate land transaction that LBTT must inject itself. Although the exercise of an option or pre-emption right is a separate transaction, it may be related to the prior granting of the option or right of pre-emption, not necessarily depending on the intentions of the buyer and seller at the time of the transaction. If they are related, the counterparty is aggregated. This may require two LBTT returns if the aggregation results in the granting of an option being taxable if it was not previously taxable and had not been made for the first restitution of the LBTT. Options and pre-emption rights may also be linked. The final LBTT, which must be paid by Ms. Macdonald for both the granting of the option and the purchase of the house, is determined by the overall consideration it provides for both the granting of the option and the purchase of the house. Section 26.
18.Section 4 defines “overtaxed interest” whose acquisition constitutes a Section 3 land transaction. A paid interest rate is a real right or other interest for or through a country in Scotland or the benefit of a bond, restriction or condition affecting the value of such a right or interest. Simply put, a paid interest rate is an interest in the land, so an interest in personal property such as kitchens were white or furniture outside the scope of the LBTT. This definition is very broad and covers more than the actual land rights known by Scottish law; As a result, options to purchase or sell land, land occupancy licenses and certain legal rights are interests. In some cases, certain interests are considered interest interest for the purposes of the LBTT (see.B. Part 6 of Calendar 17 (real estate investment partnerships)). The LBTT to be paid by Ms. Macdonald is determined by the overall consideration she provides for both the granting of the option and the purchase of the house ($450,000). This handy note examines how pre-purchase options and agreements on British land are treated for stamp duty purposes (LDS). Options usually appear in development situations, but they are also used in other transactions. For more information on indirect taxes and developments, see the practical note: Business Development – Indirect Tax Issues.
The granting of an option is not the acquisition of a larger land interest.