Part 2Trading income
Chapter 6Trade profits: receipts
Reverse premiums
99Reverse premiums
1
For the purposes of sections 101 and 102 a payment or other benefit is a reverse premium—
a
if conditions A to C are met, and
b
it is not excluded by section 100.
2
Condition A is that a person (“the recipient”) receives the payment or other benefit by way of inducement in connection with a transaction being entered into by—
a
the recipient, or
b
a person connected with the recipient.
3
Condition B is that the transaction (the “property transaction”) is one under which—
a
the recipient, or
b
the person connected with the recipient,
becomes entitled to an estate, interest or right in or over land.
4
Condition C is that the payment or other benefit is paid or provided by—
a
the person (“the grantor”) by whom the estate, interest or right is granted or was granted at an earlier time,
b
a person connected with the grantor, or
c
a nominee of, or a person acting on the directions of, the grantor or a person connected with the grantor.