O Fanning v HMRC

In O Fanning v HMRC [2020] UKFTT 292 (TC) (9 July 2020) the First-tier Tribunal (FTT) found that an SDLT scheme that relied on the interaction between the old (now repealed) sub-sale provisions (at the then FA 2003 s 45) and the option provisions (at FA 2003 s 46) failed because the grant of the option (the secondary contract) was not substantially performed at the same time as the original contract. Alternatively FA 2003 s 75A applied. The FTT held that the consideration paid by the taxpayer was fully chargeable to SDLT and dismissed the appeal.

The taxpayer acquired a residential property in 2011 from an unrelated vendor for £5m. At the same time as the contract for the acquisition of the property was completed the taxpayer granted a call option to San Leon Energy PLC (San Leon) for £100 under which San Leon could buy the property for a...