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Commentary

92 Reverse premiums on a grant of a lease

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92 Reverse premiums on a grant of a lease

| Commentary

In a weak property market it is not uncommon for a landlord to pay a tenant a sum of money to induce him to enter into a lease. This is commonly referred to as a ‘reverse premium’. HM Revenue and Customs have treated previously a tenant who receives a reverse premium in the course of his business as having made a taxable supply at the standard rate to the landlord, on the basis that anything which is done for a consideration which

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