Taxes Consolidation Act 1997 Schedule 14 Paragraph 10

Leases of property other than land

Paragraph 10 of Schedule 14 extends certain capital gains tax lease rules to leases of property other than land and provides a rule for determining the term of a lease of movable property that is a wasting asset.

• The CGT rules on part disposals, premiums, sub-leases out of short leases, and lease duration apply to leases of all property, not just land.
• Paragraphs 1, 2, and 6–8 of Schedule 14 do not extend to non-land property — only paragraphs 3–5 and 9 apply, with any necessary modifications.
• A lease of movable property that is a wasting asset is assumed to terminate no later than the end of the predictable life of the asset itself.
• This prevents avoidance of CGT by the grant of a lease for a term longer than the useful life of the underlying wasting asset.