Lease Premium on Grant of Short Lease Flashcards
1
Q
Assess the amount of premium in Property Income?
A
Total premium * ((51 - Duration of lease in year) / 50)
2
Q
Bill grants Richard a lease to a shop on 30 June 2022
Annual rent £5,000 due on 1 July 2022
Term: 20 years
Premium: £60,000
Calculate property income assessment
A
Premium: ((51-20)/50) * £60,000 = £37,200
+ Rent received: £5,000
3
Q
Show the relief available for Richard for premium paid?
A
£37,200 / 20 = £1,860 p.a.
