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Taxation, gross funds and the ownership of commercial property

Taxation, gross funds and the ownership of commercial property Discusses the advantages to a tax paying company in the absence ofinflation, to lease commercial property from a nontax payinginstitution. Outlines the reasoning behind the existence of a market inthe sale of short leaseholds to gross funds. Explores the financialadvantages to leaseholds being owned by taxpaying firms when there isprice inflation, but declares the wisdom of selling to gross funds atthe point at which their monetary value starts to decline. Suggests thatthe UK tax system, which does not allow firms to write off the cost ofinvestment in commercial buildings against tax, affects the pattern ofownership of these buildings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Valuation Emerald Publishing

Taxation, gross funds and the ownership of commercial property

Journal of Valuation , Volume 8 (4): 11 – Apr 1, 1990

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0263-7480
DOI
10.1108/EUM0000000003289
Publisher site
See Article on Publisher Site

Abstract

Discusses the advantages to a tax paying company in the absence ofinflation, to lease commercial property from a nontax payinginstitution. Outlines the reasoning behind the existence of a market inthe sale of short leaseholds to gross funds. Explores the financialadvantages to leaseholds being owned by taxpaying firms when there isprice inflation, but declares the wisdom of selling to gross funds atthe point at which their monetary value starts to decline. Suggests thatthe UK tax system, which does not allow firms to write off the cost ofinvestment in commercial buildings against tax, affects the pattern ofownership of these buildings.

Journal

Journal of ValuationEmerald Publishing

Published: Apr 1, 1990

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