Leases: part of premium chargeable as property income
ITTOIA05/S287 and CTA09/S227
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 as property income, seePIM1200+. The amount chargeable as income 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.