Commentary

C2.1203 Wasting of expenditure attributable to a lease

Capital gains tax
Capital gains tax | Commentary

C2.1203 Wasting of expenditure attributable to a lease

Capital gains tax | Commentary

C2.1203 Wasting of expenditure attributable to a lease

A lease of land1 is not a wasting asset until the time when its duration2 does not exceed 50 years3. When a lease has no more than 50 years to run, the expenditure attributable to its acquisition is deemed to waste away over the balance of its duration. For a lease other than a lease of land, the expenditure is deemed to waste on a straight-line basis, so that an equal daily amount is written off day by day4.

For a lease of land the straight-line method of writing off allowable expenditure does

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