Section 23A | Application of section 23E: conditions ^F1

(1)Section 23E (tax treatment of relevant benefits) applies if Conditions A to E are met.^F1

(2)Condition A is that a person (“T”) is or has been carrying on a trade (the “relevant trade”) alone or in partnership.^F1

(3)Condition B is that—^F1

(a)there is an arrangement (“the arrangement”) in connection with the relevant trade to which T is a party or which otherwise (wholly or partly) covers or relates to T, and^F1

(b)it is reasonable to suppose that, in essence—^F1

(i)the arrangement, or^F1

(ii)the arrangement so far as it covers or relates to T,^F1

is (wholly or partly) a means of providing, or is otherwise concerned with the provision of, relevant benefits.

(4)Condition C is that—^F1

(a)a relevant benefit arises to T, or a person who is or has been connected with T, in pursuance of the arrangement, or^F1

(b)a relevant benefit arises to any other person in pursuance of the arrangement and any of the enjoyment conditions (see section 23F) is met in relation to the relevant benefit.^F1

(5)Condition D is that it is reasonable to suppose that the relevant benefit (directly or indirectly) represents, or has arisen or derives from, or is otherwise connected with, the whole or part of a qualifying third party payment.^F1

(6)Condition E is that it is reasonable to suppose that a tax advantage would be obtained by T, or a person who is or has been connected with T, as a result of the arrangement.^F1

(7)For the purposes of subsection (3) in particular, all relevant circumstances are to be taken into account in order to get to the essence of the matter.^F1

(8)In this section and sections 23B to 23H, “this group of sections” means this section and those sections.^F1

(9)The provisions of this group of sections apply to professions and vocations as they apply to trades.^F1

(10)See Schedule 12 to F(No.2)A 2017 for provision about the application of this group of sections in relation to loans and quasi-loans that are outstanding on 5 April 2019.^F1