The effect of VATA 1994, Sch 9, Pt II, Group 1, Item 1(n) is that the grant of any right in relation to the supply of land or a building that is excluded from exemption by VATA 1994, Sch 9, Pt II, Group 1 is also excluded from exemption.
For the sake of simplicity the commentary below refers to buying and selling land and buildings but it is also applicable to leases and other rights over or licences to occupy land and buildings.
An option to buy land or a building is an agreement between a potential seller and a potential buyer that is often referred to as a call option. The agreement should state the terms and conditions under which the holder of the call option (the potential buyer) can exercise the option and require the potential seller to sell the land or building. For the VAT treatment of options to buy, see below.
An option to sell land or a building is an agreement
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