CG76740 - Wasting assets: leases of other assets

The predictable life of a lease of an asset other than land, will depend on the terms of the lease. If it is clear that the lease has a finite life of fifty years or less, it will be treated as a wasting asset.

Where a lease is granted for a period of fifty years or less, but there is a renewal clause in the agreement, you should still regard this as a wasting asset. As the predictable life is based on the position as it was when the lease was originally granted, it could not be said with certainty that it would be renewed.