BIM41100 - Receipts: reverse premiums: person providing the inducement

A reverse premium is chargeable in the first instance only if the grantor provides the inducement. The grantor is the person who is now granting, or who previously granted, the interest in land that is the subject of the relevant transaction.

In order to block an obvious avoidance route, however, an inducement provided by certain other persons is also caught. Those persons are:

• any person connected with the grantor; or
• any nominee or person acting on the directions of either the grantor or the connected person.

(FA99/SCH6/PARA1 (1)(c) and ITTOIA05/S99 (4)).