Leasehold

An agreement between the lessee and lessor specifying the lessee's right to use the leased property for a specific purpose and given time at a specified rental payment is called a 'Leasehold'.

For tax reporting purposes this is mainly pertinent to the Landlord, who can reference the lease to ratify the gross rental income received from the tenant, including in a part tax year (i.e. tax year of commencement), however, the Landlord may also be subject themselves to a long lease on the property and pay ground rent, whereby, adjustments to this during the course of the lease can affect capital gains calculations if the property is ever disposed.