CA33020 - IBA: Relevant interest: Creation of subordinate interest

CAA01/S288

An interest that is the relevant interest stays the relevant interest if a subordinate interest is granted out of it unless a long lease is granted out of the relevant interest and an election is made to treat that grant of a long lease as the sale of the relevant interest CA33100, (Woods v R M Mallen Engineering Ltd. 45TC619). In the Woods v Mallen case, a sublease was created out of a 99-year leasehold interest that was the relevant interest in a building. The sublease expired three days before the leasehold interest. A claim that the sublease was the relevant interest was refused.