BIM41050 - Specific receipts: reverse premiums: contents

A reverse premium is a payment or other benefit received as an inducement to take on a lease or other interest in land. A reverse premium is treated for Income Tax and Corporation Tax purposes as a receipt of a revenue nature. If the transaction is entered into for the purposes of a trade, the reverse premium is a trade receipt. Otherwise, it is a receipt of a property business. The guidance on reverse premiums is arranged as follows.

1. BIM41051

   Meaning of ‘reverse premium’ and terms used in connection with reverse premiums
2. BIM41052

   The commercial background
3. BIM41055

   The legislation
4. BIM41060

   Tax treatment of the payer
5. BIM41075

   Meaning of ‘payment or other benefit’
6. BIM41085

   Fitting out costs
7. BIM41090

   Contributions to fitting out costs on assets qualifying for capital allowances
8. BIM41105

   Conveyance of a freehold
9. BIM41110

   Assignment of a lease
10. BIM41125

    Timing of the receipt: the normal case
11. BIM41130

    Timing of the receipt: the avoidance case: how to recognise it
12. BIM41135

    Timing of the receipt: timing in the avoidance case
13. BIM41140

    Specific exclusions