To read the full version of this content please select one of the options below:

Taxation, gross funds and the ownership of commercial property

Journal of Valuation

ISSN: 0263-7480

Article publication date: 1 April 1990


Discusses the advantages to a tax paying company in the absence of inflation, to lease commercial property from a non‐tax paying institution. Outlines the reasoning behind the existence of a market in the sale of short leaseholds to gross funds. Explores the financial advantages to leaseholds being owned by taxpaying firms when there is price inflation, but declares the wisdom of selling to gross funds at the point at which their monetary value starts to decline. Suggests that the UK tax system, which does not allow firms to write off the cost of investment in commercial buildings against tax, affects the pattern of ownership of these buildings.



Evans, A.W. (1990), "Taxation, gross funds and the ownership of commercial property", Journal of Valuation, Vol. 8 No. 4, pp. 339-349.




Copyright © 1990, MCB UP Limited