The most obvious form of inducement is a cash payment by a
landlord to a tenant, but there are many other forms commonly
called reverse premiums. A landlord may give a tenant some benefit
other than cash, or pay a sum to a third party to meet a liability
of the tenant. Not all forms of inducement are taxable reverse
premiums.
Broadly, the legislation charges only benefits procured by
actually laying out money. It does not catch inducements that
represent amounts foregone or deferred by the operator, such as
rent-free periods or reduced rents. The smaller deduction for rent
payable will reflect such inducements in the tenant's chargeable
profits.
Apart from cash payments to the tenant, the commonest forms
of inducement that are taxable include:
