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Grants of leases


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Corporation Tax
Guidance

Grants of leases


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Corporation Tax
Guidance
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The creation or ‘grant’ of a lease out of an existing lease or freehold is a part disposal of the existing asset. The capital gains position of the person or company making the disposal (the landlord) and the tenant depends on the length of the lease; whether the lease is a long lease, with a term exceeding 50 years, or a short lease, with a term of 50 years or less. The permutations are summarised in the table below and explained in more detail in the rest of this note.

This guidance note covers capital gains and income aspects only. SDLT and VAT will also be relevant, for which please refer to the Stamp duty land tax ― basic rules for companies and Land and buildings ― buying and selling ― overview guidance notes respectively.

LandlordTenant
Grant of long lease out of freehold or long sublease out of long leasePart disposal of the freehold interest or the long lease. The chargeable gain is calculated using

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Rob Durrant-Walker
Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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