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Our client surrendered her interest in a 30-year lease on a cottage in September 2005. The lease was taken out in November 1997 and therefore had a further 22 years, 2 months left to run. The consideration for the surrender of the lease was £20,000 which is subject to capital gains tax.
Our client surrendered her interest in a 30-year lease on a cottage in September 2005. The lease was taken out in November 1997 and therefore had a further 22 years 2 months left to run. The consideration for the surrender of the lease was £20 000 which is subject to capital gains tax.
Prior to the lease being granted my client spent in excess of £100 000 renovating the property to make it habitable. If the expenditure had been incurred after the lease had been granted then this would have been treated as enhancement expenditure and there would have been some relief available to my client.
Can Taxation readers comment on whether there is any relief available to my client for this expenditure as she
has a substantial capital gain from a share sale in the same tax year?
Query T16 878 — Smee.
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