DUTIES ACT 1997 - SECT 107
Assignment of rights under call option dutiable as transfer
DUTIES ACT 1997 - SECT 107
Assignment of rights under call option dutiable as transfer
107 Assignment of rights under call option dutiable as transfer
(1) If a person (
"A" ) who has a right under a call option to require another person (
"B" ) to sell dutiable property assigns that right, so that the option is
exercisable by a third person (
"C" ), duty under Chapter 2 is chargeable on that assignment as if the
assignment were a transfer of the dutiable property concerned. The duty
chargeable on that assignment is referred to in this Part as
"call option assignment duty" .
(a) if A enters into an agreement or arrangement under which A, for
valuable consideration, relinquishes the right under a call option to require
B to sell dutiable property and a call option to require B to sell the
dutiable property is granted to a third person (
"C" ), A is to be treated as having assigned that right under the call option
so that the option is exercisable by C, and
(b) if, on or in connection with
the exercise of a call option, A, for valuable consideration, enters into an
agreement or arrangement under which A nominates a third person (
"C" ) as the purchaser or transferee of dutiable property the subject of a
call option, A is to be treated as having assigned the right under the call
option to require B to sell the dutiable property so that the option is
exercisable by C, and
(c) if A enters into an agreement or arrangement under
which A, for valuable consideration, relinquishes the right under a call
option to require B to sell dutiable property and B agrees to sell the
dutiable property to a third person (
"C" ), A is to be treated as having assigned that right under the call option
so that the option is exercisable by C.
(3) An assignment is chargeable with
duty as a consequence of this Part only if the person who may be required
under the call option to sell the dutiable property (that is, B) has a right
under a put option to require A, an associated person of A or an assignee of A
to purchase the dutiable property.
(4) If the assignment is chargeable with
call option assignment duty, Chapter 2 applies in respect of the assignment in
the same way as it applies to other transfers of dutiable property, and a
reference in this Act to a dutiable transaction includes such an assignment,
subject to this Part.
(4A) If the assignment is chargeable with
surcharge call option assignment duty, Chapter 2A applies in respect of the
assignment in the same way as it applies to other transfers of
residential-related property, and a reference in this Act to a surcharge duty
transaction includes such an assignment, subject to this Part.
(6) This section applies regardless of when the call
option or put option is exercisable.
(7) An assignment of a right under a
call option to purchase dutiable property, as referred to in subsection (1) or
(2), is referred to in this Part as a
"call option assignment" .