The tax can be levied on the basis of an option or subscription right for land transactions. In the eighteenth-century United States, when a person bought the right of pre-emption over the land, he was not buying the land, but only the right to buy the land.  In the case of the Phelps and Gorham Purchase, the Massachusetts Syndicate paid $1,000,000 for pre-emption rights, then paid Indians who thought they belonged to the country, $5,000 in cash and an annual pension of US$500 for their campaign title.  If the condition becomes complex or if other agreements are needed in addition to the condition, the agreement becomes rather an option and an option agreement is more appropriate. The Companies Act 2006 is the source of shareholders` pre-emption rights in UK companies. In accordance with section 561(1) of the Companies Act 2006, a company may not issue shares in a person unless it has made an offer (on the same or more favourable terms) to any person already holding shares of the company in its share and has submitted the time limit granted to the shareholder for acceptance of the offer, It`s over. Where a right of pre-emption has been agreed, it is in the interest of the landowner to reserve the acceptance of an offer from a third party to an offer slightly lower than that of the holder of the right of pre-emption. This allows the landowner to accept an offer from a third party representing, for example, 95% of the initial offer, without having to return to the holder of the subscription right to allow him to accept a slightly lower price. Clearly, it is likely that the holder of the right of pre-emption will object to such a provision.
The holder of the subscription right will likely ask for a reasonable period of time to review the landowner`s offer and either accept or refuse. This must be weighed against the potential inconvenience to the landowner if the acceptance period is extended and the property is suspended from market volatility. A subscription right, a right of pre-emption or a first purchase option is a contractual right to acquire certain newly created immovable property before it can be offered to another natural or legal person.  It comes from the Latin verb emo, emere, emi, emptum, buy or buy, plus the inseparable preposition pre, before. . . .