Grant of a sub-lease

By Tolley
Corporation_tax_img6

The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Grant of a sub-lease
  • Sub-lease granted out of freehold or long lease
  • Sub-lease granted out of short lease
  • Adjusting amount

Sub-lease granted out of freehold or long lease

Where a premium is required under a lease of land, which is a short lease, a landlord is treated as receiving, when the lease is granted, an amount of rent (additional to any actual rent) equal to the amount of the premium reduced by one-fiftieth for each complete year, less one, comprised in the duration of the lease.

When the short lease is granted out of a freehold or long lea

More on Leases: