Taxation of Chargeable Gains Act 1992 section 240

Leases of land and other assets

Section 240 introduces Schedule 8, which contains special rules for calculating chargeable gains and allowable losses arising from leases of land and, in certain cases, leases of other property.

• Schedule 8 sets out specific capital gains tax rules that apply to the disposal of leases
• The rules apply primarily to leases of land, recognising that a lease is a wasting asset whose value diminishes over its remaining term
• Paragraph 9 of Schedule 8 extends certain of these rules to leases of property other than land, but only to the extent specified in that paragraph
• The effect is that leases receive their own tailored treatment under the chargeable gains legislation, rather than simply following the general rules for asset disposals