Stamp duty on transfer of call options
29 July 2005The State Revenue Legislation Amendment Act 2005 amended the Duties Act 1997 (NSW) with effect from 27 June 2005. The amendments introduced duty on a transfer of a call option over dutiable property in circumstances where there is also a put option over the same property. An arrangement by which such a call option is novated for valuable consideration may also be treated as a transfer. The duty imposed on the transferor is in addition to duty currently payable by a transferee of a call option over land in New South Wales, and is also in addition to the duty currently payable by the transferee when it exercises that option.
The changes were designed to prevent perceived avoidance, particularly in the property development industry. However, some reports have confused the property industry about the nature of the changes. This presentation is intended to remove that confusion.
To view this presentation, please click here.* The presentation includes dialogue, so please enable your computer sound system.
For any further information or assistance, please contact any member of the Freehills’ Stamp Duty or Property teams. Contact details are included in the presentation.
* File size is 27MB and may take time to download.
