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1986 Act Tenancies

Client is surrendering his lease

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Client rents land originally leased in the early 1970s to his father which passed on to client by statutory succession on death of father (c.20 years ago). Landlord has sold the land to a third party who now wishes to take occupation of the land in exchange for a sum to be agreed. Question is - is this a capital gain due to a lease assignment or am I missing something? I cannot get on Bloomsbury just now so interested in member's opinions in the meantime!

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20th Feb 2019 21:05

Sounds like a surrender rather than an assignment.

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By MJShone
21st Feb 2019 08:25

Yes - CGT

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21st Feb 2019 08:47

When you get Bloomsbury back, look up Davis v Powell 51TC492.

These AHA tenancies are valuable beasts. Do you know what the base cost is?

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21st Feb 2019 11:32

Thanks for the replies - that Powell case is bang on. Is there a different tax treatment between surrender and assignment? I assumed not!

As for base cost I am thinking negligible but more details to follow.

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