Leases: introduction: long and short leases
A `long lease’ is a lease with over 50 years to run. Such a lease is not a wasting asset for CGT purposes until its remaining term is less than 50 years.
Long leases are treated in the same manner as freeholds and are relatively straightforward.
A `short lease’ is a lease with 50 years or less to run. Such a lease is a wasting asset for CGT purposes.
Short leases are the subject of a number of special rules which are covered in detail later in these instructions.