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HMRC internal manual

Property Income Manual

HM Revenue & Customs
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Premiums: lease granted between 12 June 1969 and 25 August 1971


This paragraph describes how the length of a lease is to be determined for the purpose of the charge on premiums etc. if the lease was granted after 12 June 1969 but before 25 August 1971. You may also have to read PIM1206 and PIM1207 which deal with leases granted after 25 August 1971. This guidance may be needed where a tenant claims a deduction under ICTA88/S37 or ITTOIA05/S287 onwards (see PIM2300 onwards) or ICTA88/S87 or ITTOIA05/S60 onwards (see BIM46250 onwards).

Treat leases granted between 12 June 1969 and 25 August 1971 like leases granted after 25 August 1971 except for the following modifications:

  • If the landlord had an option to terminate the lease, the length of the lease is not to be treated as extending beyond the earliest time at which the landlord could give notice to terminate the lease.
  • In a case where the terms of a lease make it unlikely that it will continue beyond a certain date, you do not need to consider whether the amount of the premium is greater than it would be for the shorter term.
  • There is no provision covering the case where the tenant (or a connected person) has a right to a further lease.