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A lease is the right to use an asset. Where the asset in question is land or buildings, the lease is the right to occupy the land or buildings for a specified period of time, usually in return for a specified rent. Contrast this to a freehold, which is the outright ownership of the property and the land upon which it is built. Freehold and leasehold are separate assets and, as such, a lease can be bought and sold in its own right (known as the assignment of a lease) as well as created from a freehold or another leasehold (known as the grant of a lease).

The consideration paid on the acquisition of a lease whether by way of assignment or grant may be split into two elements: a premium and rent. Some short-term leases may involve only the payment of rent. The commentary below considers the UK tax treatment of the lease premium. For the UK taxation of the rent from the point of view of the person receiving the rent, see UK2.2.1 (individuals)