Commentary

C2.1230 Execution of improvements by tenant

Capital gains tax
Capital gains tax | Commentary

C2.1230 Execution of improvements by tenant

Capital gains tax | Commentary

Leases—supplementary provisions

C2.1230 Execution of improvements by tenant

In computing the amount taxed as income on the grant of a short lease, there has to be included, as if it were a premium, the value to the landlord of improvements to the property which the tenant is required to carry out under the terms of the lease. This value is measured by the difference between the value of the landlord's interest immediately after the grant of the lease and the value it would have had if the obligation had not been imposed on the lessee1.

For capital gains purposes, the

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