BIM64175 - Measuring the profits (particular trades): Private finance initiative (PFI): Contribution of land - reverse premiums
The reverse premiums legislation at FA99/S54 and FA99/SCH6 charges “a payment or other benefit by way of an inducement” to take an interest in land (see BIM41050 onwards).
In some PFI projects the public sector “purchaser” grants a lease, to the private sector “operator”, of the land on which the operator will construct the PFI “property”. In addition the purchaser may make a contribution of money, or money's worth (e.g. surplus land) as part of the commercial arrangement.
In such circumstances we do not consider that the contribution is an inducement for the purposes of the reverse premium legislation.