Leases: capital loss arising on grant of short lease: restriction
- a short lease is granted out of a short lease;
- a capital loss arises; and
- the holder of the original lease is entitled to relief under ITTOIA05/S292 or CTA09/S232, see PIM2320,
the allowable loss is restricted by the amount of the relief given under ITTOIA05/S292 or CTA09/S232.
The way in which this works in practice is illustrated by the following example.