107Assignment of rights under call option dutiable as transfer

#### 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. > > > (1A) Duty under Chapter 2A is also chargeable on the assignment if A is a foreign person and the dutiable property concerned is residential-related property. The duty chargeable on that assignment is additional to call option assignment duty and is referred to in this Part as surcharge call option assignment duty. > > > (2) For the purposes of this section— > > > > > (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. > > > (5) For the purposes of Chapters 2 and 2A, the transfer of dutiable property (including dutiable property that is residential-related property) is taken to occur when the assignment is made. > > > (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. > > **s 107:** Am 2002 No 108, Sch 1 \[8\]. Subst 2003 No 79, Sch 1 \[1\]. Rep 2004 No 96, Sch 1 \[3\]. Ins 2005 No 51, Sch 1 \[14\]. Am 2006 No 87, Sch 1 \[8\] \[9\]; 2010 No 46, Sch 1.3 \[20\] \[21\]; 2016 No 32, Sch 1 \[17\]–\[21\]; 2020 No 14, Sch 1\[3\]; 2022 No 59, Sch 2.15\[2\].