Appears that ]option to purchase’ may now attract stamp duty as a ‘contract for sale’ I question them today and got the following (written) respose:
Q: ii) Does an option to purchase property/land at a later date, attract stamp duty”
A: Generally yes – need to clarify.the exceptions.We used to be able to avoid this but taking out an ‘option to purchase’ a property at a later date at a certain price..
It appears that the exceptions may only be on ‘off the plan’ stuff..
will keep you informed on this. Have been invited to ring them Tuesday morning for ‘more clarification..! Funny how they won’t put it in writing isn’t it!..
here’s another one of their answers:
Q: i) What do you call ‘put and call’ arrangements?
A: It is intended to have a very wide meaning.really!!
Apostle
Hi Apostle,
As far as I am aware the stamp duty is only payable on the option fee. Unless this has changed in the last 12 months??Here is the answer I received (over the phone): Stamp duty is payable on the option fee because this is all the contract is worth when stamp duty is payable. When the option is exercised then the stamp duty is payable on the (land) transfer. Makes sense to me.
It is best to take the actual option contract in for them to have a look at because it seems like theres a different answer for every person who answers the phone…
Regards
Tracey
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