Section 96 — Corporation Tax Act 2009: Reverse premiums

Reverse premiums 96 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.