PART VIValuation

CHAPTER IVSale of Land from Deceased's Estate

194Leases

1

Where the claim relates to an interest which is the interest of a lessee under a lease the duration of which at the date of the death does not exceed fifty years, an addition shall be made to the sale price of the interest; and the amount of the addition shall be equal to the appropriate fraction of the value on death of the interest.

2

In subsection (1) above, " the appropriate fraction " means the fraction—

P(1)−P(2)P(1)math

where—

  • P(1) is the percentage that would be derived from the Table in paragraph 1 of Schedule 3 to the [1979 c. 14.] Capital Gains Tax Act 1979 for the duration of the lease at the date of the death, and

  • P(2) is the percentage that would be so derived for the duration of the lease at the date of the sale.