Commentary

C2.1204 Leases of land

Capital gains tax
Capital gains tax | Commentary

C2.1204 Leases of land

Capital gains tax | Commentary

C2.1204 Leases of land

The writing off of expenditure in respect of a lease of land having a duration of 50 years or less is in accordance with the table in TCGA 1992, Sch 8, para 1. That table specifies the percentage for each whole number of years, and states that if the duration of the lease is not an exact number of years, the percentage to be taken is:

  1.  

    •     the percentage for the whole number of years, plus

  2.  

    •     for each additional month, one twelfth of the difference between that figure and the percentage for the next higher number of years.

Odd days up to 13 are not counted; 14 odd days or more count as one month.

A table showing all the percentages required appears below.

Fraction of expenditure unexpired each month

Months:012345
Years
50
(or

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