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Tax treatment of lease

Tax treatment of lease

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Client has signed a lease of 23 years for his premises for £220000 from the local council & I need to know the tax treatment of this £220000 . Currently I have this in the accounts as an asset being amortised over the period of the lease just need to confirm what the tax treatment will be , they will not be paying any rent over the term of the lease.

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Replying to paul.benny:
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By Gert
29th Jan 2016 15:35

Thank you for the above.

Do the same principals apply when the landlord is the local council & therefore is not conducting a taxable property business ?

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By Gert
29th Jan 2016 15:33

Tax treatment of lease

Thank you for the above .

Do the same principals apply if the landlord is the local council & therefore not conducting a taxable property business ?

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By michaelblake
30th Jan 2016 15:51

It would seem so

I have not checked the relevant legislation but the guidance at PIM 2330 notes that:

 

The chargeable amount of the premium must be calculated - that is the amount of the premium on which the recipient of the premium is taxed (or would be if he were chargeable). 

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