Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Leases: granting of a lease: no premium paid on grant of lease

If no premium is paid on the grant of a lease, and provided that the grant of the lease was an arm’s length transaction, no chargeable gain will accrue.

However, if the landlord has incurred any expenditure allowable under TCGA92/S38 (1) (c), see CG15160+, in granting the lease, a capital loss equal to the amount of that expenditure will accrue.