CG70751 | Leases: introduction: other definitions relating to leases
From HM Revenue & Customs · Capital Gains Manual
Some other terms relating to leases are defined here:
| Term | Definition |
|---|---|
| Premium | A capital sum paid for the grant of a lease. The payment may be made in money or money’s worth. |
| Reverse Premium | A capital sum paid by the landlord in order to induce the tenant to enter into the lease. A payment made by a tenant, either to surrender or assign an onerous lease, may also be referred to as a reverse premium. |
| Grassum | This is the Scottish equivalent of a premium. |
| Rack Rent | The maximum rent which can be obtained under a particular lease. It is equivalent to a ‘full market rent’. |
| Lessor | The person who grants a lease (otherwise known as a landlord). |
| Lessee | The person taking a lease (otherwise known as a tenant). |