CG70752 | Leases: introduction: long and short leases

Long Lease

A ‘long lease’ is a lease with over 50 years to run. Such a lease is not a wasting asset for CGT purposes until its remaining term is less than 50 years. Long leases are treated in the same manner as freeholds and are relatively straightforward.

Short Lease

A ‘short lease’ is a lease with 50 years or less to run. Such a lease is a wasting asset for CGT purposes. Short leases are the subject of a number of special rules which are covered in detail later in these instructions.