½Û×ÓÊÓƵ

Grants of leases


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Corporation Tax
Guidance

Grants of leases


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Corporation Tax
Guidance
imgtext

The creation or ‘grant’ of a lease out of an existing lease or freehold is a part disposal of the existing asset. The capital gains position of the person or company making the disposal (the landlord) and the tenant depends on the length of the lease; whether the lease is a long lease, with a term exceeding 50 years, or a short lease, with a term of 50 years or less. The permutations are summarised in the table below and explained in more detail in the rest of this note.

This guidance note covers capital gains and income aspects only. SDLT and VAT will also be relevant, for which please refer to the Stamp duty land tax ― basic rules for companies and Land and buildings ― buying and selling ― overview guidance notes respectively.

LandlordTenant
Grant of long lease out of freehold or long sublease out of long leasePart disposal of the freehold interest or the long lease. The chargeable gain is calculated using

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Rob Durrant-Walker
Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

Powered by
  • 10 Mar 2025 10:32

Home/ ½Û×ÓÊÓƵ Guidance/ Corporation Tax / Running a property business

Popular Articles

Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more
Corporation Tax

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more