What Is a Lease Guarantee?

Lease security is to guarantee the performance of the lease contract. When the contract is concluded, the lessee pays the lessor a certain percentage of the price (or rent) payable to the lease subject. After the security deposit is delivered: If the lessee does not fulfill the relevant provisions of the lease contract, he has no right to request a security deposit. If the lessor does not perform the lease contract after accepting the security deposit, according to the practice, the security deposit shall be doubled back to the lessee. If the lessee normally performs the contract as required, the security deposit can offset part of the price or rent of the leased property. The amount of the security deposit paid by the lessee is determined by the parties when negotiating an appropriate proportion based on the subject matter and the lessee when signing the contract, which is generally 5% to 15% of the lease price. ^[1]

Lease security

Right!

Lease security is to guarantee the performance of the lease contract. When the contract is concluded, the lessee pays the lessor a certain percentage of the price (or rent) payable to the lease subject. After the security deposit is delivered: If the lessee does not fulfill the relevant provisions of the lease contract, he has no right to request a security deposit. If the lessor does not perform the lease contract after accepting the security deposit, according to the practice, the security deposit shall be doubled back to the lessee. If the lessee normally performs the contract as required, the security deposit can offset part of the price or rent of the leased property. The amount of the security deposit paid by the lessee is determined by the parties when negotiating an appropriate proportion based on the subject matter and the lessee when signing the contract, which is generally 5% to 15% of the lease price. ^[1]

With regard to lease security, make the following analysis:

1) Lease security is not for

In the UK, when land is leased continuously for 50 years or less, part of the deposit is treated as income or payment received, and the rest is treated as capital income or capital payment. The treatment of lease security in capital gains tax in the United Kingdom is to treat it as a (lessor) through leasing and partially dispose of a considerable investment income (ie, free holding or mutual lease) (part diposal, see this article) (To the lessee). For the continuous lease of land for 50 years or less, the consequence of the wasteful property theory is: a certain percentage of all costs incurred by obtaining the lease (that is, it is not treated as rent in income tax and no other permission is allowed) The portion of the deposit that was treated for expenditure) was wasted during the remainder of the lease, so it is not deductible when capital gains tax is levied on possible gains when the lease is sold or otherwise disposed of.