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HMRC internal manual

Property Income Manual

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 CTA09/S227 or ITTOIA05/S287 onwards (see PIM2420 onwards) or CTA09/S62 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.

Submissions

Submit to BAI:

  • in any case of doubt or difficulty.

For information on how to make a submission to BAI please see here.

Contact the VOA:

  • for every case where a valuation is needed of the open market premium where the length of the lease is to be treated as different from that originally stated in the lease.

For information on how to contact VOA please see here.