In The Wakelyn Trust v HMRC (TC/2019/01108/V) (17 January 2022) the FTT found that the trust was not entitled to a deduction in its CGT computation on the grant of a lease of land for the value of its releasing the previous tenant from an obligation to reinstate the land on the surrender of its lease.
In 1972 the trust leased an area of land to a company (B&R) for 30 years. B&R then constructed a dock and fabrication yard partly on the land and partly on its own adjacent land. In 1996 the lease was extended for a further 30 years but in 2011 B&R agreed to sell the yard to another company GE. Accordingly B&R surrendered the lease to the trust and the trust granted a new lease to GE. The trust submitted a capital gains computation in its return which...
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In The Wakelyn Trust v HMRC (TC/2019/01108/V) (17 January 2022) the FTT found that the trust was not entitled to a deduction in its CGT computation on the grant of a lease of land for the value of its releasing the previous tenant from an obligation to reinstate the land on the surrender of its lease.
In 1972 the trust leased an area of land to a company (B&R) for 30 years. B&R then constructed a dock and fabrication yard partly on the land and partly on its own adjacent land. In 1996 the lease was extended for a further 30 years but in 2011 B&R agreed to sell the yard to another company GE. Accordingly B&R surrendered the lease to the trust and the trust granted a new lease to GE. The trust submitted a capital gains computation in its return which...
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