(1) CGT event F2 happens if:
(a) a lessor grants a lease over land (whether or not the lessor owns an estate in fee simple in the land), or renews or extends a lease over land; and
(b) the lease, renewal or extension is for at least 50 years and:
(i) at the time of the grant, renewal or extension, it was reasonable to expect that it would continue for at least 50 years; and
(ii) the terms of the lease, renewal or extension as they apply to the lessee are substantially the same as those under which the lessor owned the land or held a lease of the land; and
(c) the lessor chooses to apply this section instead of section 104-110.
Note: Section 103- 25 tells you when the choice must be made.
(2) The time of the event is when the lessor grants the lease, or at the start of the renewal or extension, as appropriate.
(3) The lessor makes a capital gain if the * capital proceeds from the event are more than the * cost base of the lessor's interest in the land. The lessor makes a capital loss if those capital proceeds are less than the * reduced cost base of that interest.
(4) A * capital gain or * capital loss the lessor makes is disregarded if:
(a) it * acquired the * CGT asset that is the land, or the lease to the lessor was granted, before 20 September 1985; or
(b) the lease to the lessor has been renewed or extended and the last renewal or extension started before that day.
Note: For any later CGT event that happens to the land or the lessor's lease of it: see section 132-10.