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Sales (assignments) of leases

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

Sales (assignments) of leases

Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Corporation Tax
Guidance
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Assignment is the disposal of an existing lease. The assignment of a lease represents a disposal for capital gains purposes of an interest in property. There is no deemed rental income to calculate on the disposal because the assignment is not the grant of a new lease.

The chargeable gain on assignment of a 'long' lease, that is a lease with at least 50 years to run, is computed as a standard capital gains disposal. This is dealt with further below.

Where the lease has less than 50 years to run at the point at which it is assigned then it will be regarded as a wasting asset. This means that only a proportion of the original expenditure will be an allowable deduction against the disposal value. The amount of the original cost of a short-term lease allowable as a deduction on disposal reduces in accordance with a statutory formula given in TCGA 1992, Sch 8 (also known as a curvilinear lease depreciation table) to reflect

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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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