[BIM41085] BIM41085 – Specific receipts: reverse premiums: fitting out costs
Where the landlord undertakes to meet fitting out costs, the tenant is receiving a reverse premium.
Fitting out costs means expenditure on the provision of fixtures and chattels to equip the building to serve the tenant's particular needs. Such expenditure is normally the tenant's responsibility. The landlord may meet the cost directly (by paying the supplier and any installation costs) or indirectly (by reimbursing the tenant). If the reimbursement is of fitting out costs, the contribution may be deducted from expenditure otherwise qualifying for capital allowances in the tenant's hands, see BIM41090.