Grant of a sub-lease

Produced by Tolley
Grant of a sub-lease

The following Owner-Managed Businesses guidance note Produced 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.

When the short lease is granted out of a fre

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