Where a lease for a term exceeding 50 years (a long lease, which is not a wasting asset1) is granted, in return for a premium, out of a freehold interest or another long lease, the capital gains treatment is as follows.
The grant is treated as a part disposal of the larger interest out of which the lease is granted2. The normal part disposal provisions (see Division C2.4) apply to calculate the allowable expenditure in computing the gain.
This treatment was confirmed in Wright3
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:41