The proposal does not take into account the impact of the option on taxes and stamps. The HMRC website has relevant information and should be considered. The exercise of an appeal option will not in itself attract a stamp duty. Stamp duty must be paid on relocation forms at 0.5% of the value of the consideration for the transfer of the shares. The transfer form as a document that actually transfers the shares is the document responsible for stamp duty. Keep in mind that Grantee can only be registered as the rightful owner of the shares when relocation forms are submitted to the company. HMRC accepts that a sale or purchase option does not in itself constitute a binding contract. It goes without saying that a binding contract can be entered into once an option has been exercised. It is necessary to examine the terms of a particular agreement in order to determine when a binding contract is concluded.
For example, the shareholders` pact (if any) may include pre-emption rights on the issuance of shares or the transfer of shares to the company, and existing shareholders must waive those rights. The incorporation of the company may also limit the issuance of shares to new shareholders. From the CGT`s perspective, this approach may be more beneficial to shareholders on an ongoing basis than if the company had an option on these shares. Assuming that the company`s shares have increased in value since the acquisition of the original shares by the surviving shareholders, this approach results in an increase in the basic costs of their holdings. The reason is that the price paid for the deceased`s shares is combined with the cost of their existing holdings. The question of whether the selling and calling options should work at the same time or whether one should start with the course of the others is sometimes discussed. Toby Harris and Chris Erwood, «Business and Agricultural Property Relief» (Bloomsbury Professional, 6th Edition, 2014) are shown in paragraph 6.15: In the public parts of the HMRC manuals, there is no indication that HMRC considers the existence of put and call options that are insuffable during the same period as the creation of a barrier for BPR. However, if the parties are not disadvantaged in staggering options, adopting this approach may reduce the likelihood that a HMRC official will transfer the matter to the technical department.