Capital gains tax | Commentary

C2.904 Leases

Capital gains tax | Commentary

C2.904 Leases

For capital gains tax purposes, a lease is any kind of agreement or arrangement under which payments are made for the use of or otherwise in respect of property1. Thus it would include a licence of intangible property such as copyright or trademarks. For detailed commentary on leases, see Division C2.12.

A lease is a wasting asset if its predictable life is 50 years or less2. The predictable life of a lease is prima facie its duration as provided by the agreement for the lease, subject to special rules described in C2.1202.

If the lease relates to an asset that

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