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.