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: Sch.A: part of premium chargeable under Schedule A

ICTA88/S34

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)
     
    50

P is the amount of the premium;

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