Lewis v Walters
Lewis v Walters
- 1992
- Taxation 129 (3355) 28 May 1992, 215-216(2) .
ChD 15 January 1992. L, as executor, had sold the house belonging to the estate of his late parents, his mother having owned the freehold subject to a 99 year lease in his father`s favour. With 16 years left to run, the lease was assessed for capital gains tax as a `wasting asset`. L countered by claiming, on appeal to the General Commissioners, that the Leasehold Reform Act 1967 allowed him to extend the lease for a further 50 years and therefore would not be so classified. The Crown disagreed saying that an extension was not in the terms of the lease and if it were so, then it could only be defined as a new, not extended asset. Moreover, L had not in fact asked for an extension. The high court agreed and dismissed the appeal with costs.
CAPITAL GAINS TAX
LEASEHOLD REFORM ACT 1967 SCHED 3
LEASES
UNEXPIRED TERM
WASTING ASSETS
ChD 15 January 1992. L, as executor, had sold the house belonging to the estate of his late parents, his mother having owned the freehold subject to a 99 year lease in his father`s favour. With 16 years left to run, the lease was assessed for capital gains tax as a `wasting asset`. L countered by claiming, on appeal to the General Commissioners, that the Leasehold Reform Act 1967 allowed him to extend the lease for a further 50 years and therefore would not be so classified. The Crown disagreed saying that an extension was not in the terms of the lease and if it were so, then it could only be defined as a new, not extended asset. Moreover, L had not in fact asked for an extension. The high court agreed and dismissed the appeal with costs.
CAPITAL GAINS TAX
LEASEHOLD REFORM ACT 1967 SCHED 3
LEASES
UNEXPIRED TERM
WASTING ASSETS