Company Lease Extension

Company Lease Extension

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Having looked through many answers on here, I can't see that this question has been answered. 

The Freehold of a residential property is owned by a flat management company of which some of the residents are shareholders. The leases back in 1982 were granted for a period of 99 years and ow they are down to 66 years. One of the residents asked to have their lease extended back up to 99 years which the company agreed to. A professional valuation was carried out and the tenant paid £16,671 and received 5 shares as part of the transaction. 

In the accounts the money has been split, £5 to issued share capital £16,666 to share premium and £16,671 to the bank. My question is around the tax position foor the company. Having read through the lease I can see no mention of nominee ownership and obviously the lease was not extended to 999 directly after the freehold was purchased so it looks like the company will then be treated as having aquired the old lease and making a partial disposal of the reversionary interest by granting the extended lease and therefore corporation tax will be payable on the gain. 

Can anyone confirm if this is the case or if I am completely wrong. 

Thanks in advance 

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By 356B
22nd Mar 2018 16:36

Surely this is the grant of a lease. Why were shares issued?
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg70960

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