Grant of a sub-lease

By Tolley
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The following Owner-Managed Businesses 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
  • Sublease 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 (ie not exceeding 50 years), 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. See the Lease premiums guidance note and Simon’s Taxes C2.1218 (subscription sensitive).

ITTOIA 2005, s 277; CTA 2009, s 217

When the short lease is granted out of a freehold or long lease, having (at the time of the granting of the short lease) a duration exceedi

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