Corporation Tax Act 2009 section 250

Reverse premiums

Section 250 deals with the transitional rules that limit the application of the reverse premium tax charge to premiums received or becoming due on or after 9 March 1999.

• The reverse premium rules in section 250 do not apply to reverse premiums received before 9 March 1999.
• They also do not apply where the recipient had an existing entitlement to the reverse premium immediately before that date.
• Any arrangements made on or after 9 March 1999 are disregarded when determining whether the recipient was already entitled to the premium before that date.
• This prevents manipulation of entitlement through later arrangements designed to circumvent the 9 March 1999 cut-off.