C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 6Trade profits: receipts

Reverse premiums

96Reverse premiums

1

For the purposes of sections 98 and 99 a payment or other benefit is a reverse premium if—

a

conditions A, B and C are met, and

b

it is not excluded by section 97.

2

Condition A is that a company (“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.