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HMRC internal manual

Capital Gains Manual

Wasting assets: franchises and licences


The predictable life of a franchise or licence will depend on the terms under which it has been granted. If it is clear from the agreement that a franchise or licence has a finite life of fifty years or less, it will be a wasting asset.

Where a franchise or licence is granted for a period of fifty years or less but there is a renewal clause in the agreement, you should still regard this as a wasting asset. As the predictable life is based on the position as it was when the franchise or licence was originally granted, it could not be said with certainty that it would be renewed. CG68270 tell you more about franchises and licences.