Commentary

C2.1233 'Reverse' premiums

Capital gains tax
Capital gains tax | Commentary

C2.1233 'Reverse' premiums

Capital gains tax | Commentary

C2.1233 'Reverse' premiums

A 'reverse premium' is defined as a payment or benefit by way of inducement where the person receiving the payment becomes entitled to an estate or interest in, or a right in or over, land. It includes payments made or received by a person connected with the grantor or the recipient of the interest1. Such a payment may take the form of a contribution towards the fitting out costs of the premises.

Position of the payer

The landlord might be able to deduct any reverse premium he pays as expenditure incurred to enhance the value of the his

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