½Û×ÓÊÓƵ

Introduction to leases and capital gains tax

C2.1201 Leases and capital gains tax—overview

A lease is, broadly speaking, a legal agreement under which the owner of land or another type of property allows another person use or occupation of that property for a period of time in return for payment. Payment may be by way of an upfront lump sum (a 'premium') or by periodic payments over the term of the lease (rent) or a combination of the two. At the end of the term of the lease, the property reverts to the holder of the superior interest (which could itself be a longer lease).

For capital gains purposes, the term 'lease' is further defined. A lease of land includes an underlease, sublease or any tenancy or licence, and any agreement for a lease, underlease, sublease or tenancy or licence and, in the case of land outside the UK, any interest corresponding to a lease as so defined. In relation to any property other