C1Part 3Trading income
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.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)