Is the surrender of a put option within the scope of SDLT?
Section 46(1) refers to “acquisition” (narrowly this could mean just grant or assignment). Also, section 46 deems there to be a land transaction but doesn’t deem a put option to be a chargeable interest under section 48 such that it isn’t caught by section 46(3)(b).
The legislation doesn’t seem clear even if the intention may have been that all transactions involving put options would be caught.
It’s a rght or power over land in that the owner of the land/grantee of the option has the right or power to require the grantor to purchase the land. Section 46(1) backs this up by treating the acquisition of the option as a land transaction thus implying that the option itself is a chargeable interest.
By the way on a slightly different topic it seems that option arangements could be used to effect a sub-sale under section 45(3). This could be useful for instance where the original purchaser wishes to retain ownership of the land for say capital gains purposes but also wishes to sub-sell for SDLT purposes to obtain the benefit of the disregard of the substantial performance of the original contract.