Q&As

A company owns the freehold in two properties, which it leases to its two sole members and directors. What are the corporation tax on chargeable gains consequences if it extends the leases for nominal consideration?

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Published on LexisPSL on 03/12/2018

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • A company owns the freehold in two properties, which it leases to its two sole members and directors. What are the corporation tax on chargeable gains consequences if it extends the leases for nominal consideration?

For the purposes of this Q&A, we have assumed that the properties are in the UK. We have further assumed that the company is not a property trader or developer and did not acquire the properties with the intention of realising a gain on their disposal. For information on determining whether a property transaction is an investment or trading activity, see Practice Note: Dealing in property or property investment?

A grant of a lease is a part disposal for the purposes of capital gains tax, and corporation tax on chargeable gains, under general princi

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