CGt on gifting Commercial Lease

[samlock]

My wife and I would like to gift the beneficial interest in a lease we own to our grandchildren for a retail property with residential uppers but need to understand the CGT cost.

When we purchased the lease at a cost of £180k there was 39 years remaining. Today there is only 5 years remaining. The lease had been subleased producing an income of approximately £30k per year.

My understanding is that the CGT will apply and the calculation would be that used for 'Assignment of a short lease'. Is this correct??

If it is correct, the allowable base cost is the original acquisition cost multiplied by the fraction S/P. The base cost is subtracted from the sale price.

What would be the sale price when gifting the lease??

[pawncob]

Market Value.