Premium on lease

Hello Jilly,

22 September/December 2020 OT question

On 1 October 2023, Sou granted a 25?yearlease of a freehold property in return for a premium
of £20,000.

What is Sou’s taxable property income for the tax year 2023/24 in respect of this lease
premium?

A £10,400
B £9,600
C £5,200
D £10,000

Th correct answer is A 10400 because 20000*(51-25)/50

But the question is for 8 months so does the income portion of the premium to be time proportioned in this case?

The second question in all questions we will be caring only about the income part of the premium I mean is that the only objective which we should be looking for ?

Thanks