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Home / Simons-Taxes /Capital gains tax /Part C2 Computation of chargeable gains /Division C2.12 Leases and capital gains tax /Grant of a lease / C2.1216A Grant of a short lease out of a freehold or long lease
Commentary

C2.1216A Grant of a short lease out of a freehold or long lease

Capital gains tax

Where a short lease is granted for a premium out of a freehold or a short sublease is granted out of long lease, there is a part disposal of the of the larger interest out of which the lease or sublease is granted. The capital gain is calculated by applying the adjustments below. For this purpose, a 'long lease' is one with a remaining term exceeding 50 years at the time of the grant of the sublease, and a 'short lease' is one with a term of 50 years or less (and is treated as a wasting asset).

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