An SDLT avoidance scheme involving the grant of an option to a third party for a nominal sum was unsuccessful, as the option did not satisfy the statutory requirements for the transfer of the property to the appellant to be disregarded.  

The appellant participated in a stamp duty land tax (SDLT) avoidance scheme in respect of the purchase of a residential property. On 16 September 2011, the vendor executed a Form TR1 conveying title in the property to the appellant. The consideration expressed in the TR1 was £5 million. On the same day, the appellant and an Irish company (SLE), of which he was executive chairman and later its CEO, executed an option whereby: (1) the appellant granted SLE an option (for £100) to purchase the property at market value; (2) SLE was entitled to exercise the option only between 16 September 2016 and 15 September 2031. The appellant hoped that the grant of the option would reduce the SDLT payable, based on FA,