Payment to sitting tenants
I have taken on a landlord client recently. To get rid of 2 sitting tenants he paid a total of £15k to them.
I understand these sitting tenants have occupied the properties for a number (10+) of years.
I would be grateful for pointers on the tax treatment of the premium paid to tenants.
Thanks


It is a capital expense
It reduces any future capital gain
http://www.publications.parliament.uk/pa/ld199900/ldjudgmt/jd000518/garn.htm