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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Leases: Sch.A: part of premium chargeable under Schedule A


Where a premium is paid for a short lease, that is a lease of not more than 50 yearsduration, part of that premium will be chargeable to Income Tax under Schedule A, seePIM1200+. The amount chargeable under Schedule A is arrived at by the following formula:

P - (P x Y)

P is the amount of the premium;

Y is the number of years, other than the first, in the term of the lease.