{
  "url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/schedule-3/paragraph-1",
  "json_url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/schedule-3/paragraph-1.json",
  "legislation": "ukpga/1979/14",
  "legislation_title": "Capital Gains Tax Act 1979 (repealed 6.3.1992)",
  "legislation_url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992",
  "path": "schedule/3/paragraph/1",
  "kind": "paragraph",
  "number": "1",
  "heading": null,
  "text": "(1) A lease of land shall not be a wasting asset until the time when its duration does not exceed fifty years.\n(2) If at the beginning of the period of ownership of a lease of land it is subject to a sub-lease not at a rackrent and the value of the lease at the end of the duration of the sub-lease, estimated as at the beginning of the period of ownership, exceeds the expenditure allowable under section 32(1)(a) of this Act in computing the gain accruing on a disposal of the lease, the lease shall not be a wasting asset until the end of the duration of the sub-lease.\n(3) In the case of a wasting asset which is a lease of land the rate at which expenditure is assumed to be written off shall, instead of being a uniform rate as provided by section 38 of this Act, be a rate fixed in accordance with the Table below.\n(4) Accordingly, for the purposes of the computation under Chapter II of Part II of this Act of the gain accruing on a disposal of a lease, and given that—\n(a) the percentage derived from the Table for the duration of the lease at the beginning of the period of ownership is P(1),\n(b) the percentage so derived for the duration of the lease at the time when any item of expenditure attributable to the lease under section 32(1)(b) of this Act is first reflected in the nature of the lease is P(2), and\n(c) the percentage so derived for the duration of the lease at the time of the disposal is P(3),\nthen—\n(i) there shall be excluded from the expenditure attributable to the lease under section 32(1)(a) of this Act a fraction equal to\nP(1)-P(3)P(1),and\n(ii) there shall be excluded from any item of expenditure attributable to the lease under section 32(1)(b) of this Act a fraction equal to\nP(2)-P(3)P(2)\n(5) This paragraph applies notwithstanding that the period of ownership of the lease is a period exceeding fifty years and, accordingly, no expenditure shall be written off under this paragraph in respect of any period earlier than the time when the lease becomes a wasting asset.\n(6) Section 39 of this Act (wasting assets qualifying for capital allowances) shall apply in relation to this paragraph as it applies in relation to section 38.\nTable\nIf the duration of the lease is not an exact number of years the percentage to be derived from the Table above shall be the percentage for the whole number of years plus one twelfth of the difference between that and the percentage for the next higher number of years for each odd month counting an odd 14 days or more as one month.\nYears\nPercentage\nYears\nPercentage\n50 (or more)\n100\n25\n81.100\n49\n99.657\n24\n79.622\n48\n99.289\n23\n78.055\n47\n98.902\n22\n76.399\n46\n98.490\n21\n74.635\n45\n98.059\n20\n72.770\n44\n97.595\n19\n70.791\n43\n97.107\n18\n68.697\n42\n96.593\n17\n66.470\n41\n96.041\n16\n64.116\n40\n95.457\n15\n61.617\n39\n94.842\n14\n58.971\n38\n94.189\n13\n56.167\n37\n93.497\n12\n53.191\n36\n92.761\n11\n50.038\n35\n91.981\n10\n46.695\n34\n91.156\n9\n43.154\n33\n90.280\n8\n39.399\n32\n89.354\n7\n35.414\n31\n88.371\n6\n31.195\n30\n87.330\n5\n26.722\n29\n86.226\n4\n21.983\n28\n85.053\n3\n16.959\n27\n83.816\n2\n11.629\n26\n82.496\n1\n5.983\n0\n0",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1979/14/schedule/3/paragraph/1",
    "retrieved_at": "2026-10-29T10:18:25.768570+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}