INTM610120 | Enjoyment Conditions: Enjoyment Test

The enjoyment test considers whether the related individual, or a person connected to the individual, is in a position to enjoy the benefit of the transfer of value. This will be the case where under the arrangements -

• the value transferred, or part of it, is so dealt with by any person as to be calculated at some time to enure for the benefit of the individual,

• the value transferred, or part of it, operates to increase the value of any assets which the individual holds or are held for the benefit of the individual,

• the individual receives or is entitled to receive any benefit provided or to be provided out of the value transferred or part of it,

• the individual may become entitled to the beneficial enjoyment of the value transferred, or part of it, if one or more powers are exercised or successively exercised (and for those purposes it does not matter who may exercise the powers or whether they are exercisable with or without the consent of another person), or

• the individual (whether acting alone or together with any other person) is able in any manner to control directly or indirectly the application of the value transferred or part of it.

Essentially, the enjoyment test asks whether the related individual and/or a person connected with them is able to enjoy the benefit of the amounts that have been transferred as a result of the material provision.

The enjoyment test can apply irrespective of the nature or form of the benefits, the time at which the benefits may accrue and irrespective of the legal entitlements arising from the arrangements.