Option to purchase and CGT event

Hi, just looking for clarification regarding selling an investment property on option. If a non refundable option deposit is released to vendor, but exchange of contract is not to take place until the following financial year, what tax year would the CGT be deemed to have occurred?
Also, if the purchaser does not take up the option to purchase, how is the option fee treated for tax purpose? What year is it declared as income?

Thanks for any feedback

 

both years.
Granting an option is a CGT event.

 

Thanks Terry, if the option is taken then CGT is paid in the first tax tear, no further CGT applies the following tax year on that sale?

 

I think they are two separate events -
1) grant of the option - little cost base, probably just legals
2) sale of the house - usual cost base (house costs + legals, stamp duty, improvements etc)

 

OK thanks. So each is assessed as in event in the year it falls. One last point. Where the money released to vendor for granting the option forms part of the eventual sale price, and is not an additional option fee, is this deemed the same? Or is treated as a sale for CGT even though the purchaser has the option of not proceeding through to purchase (in the following tax year).

 

2 CGT events
1) granting the option, and
2) the sale

Off the top of my head I think if the sale settles then you must amend the tax return to remove the grating of the option CGT and it is all taken to have happened as a sale.

 

Thanks appreciate the feedback.