Section 23E | Tax treatment of relevant benefits

(1)Where this section applies (see section 23A), the relevant benefit amount is to be treated for income tax purposes as profits of the relevant trade for—

(a)the tax year in which the relevant benefit arises, or

(b)if T has ceased to carry on the relevant trade in a tax year (the “earlier tax year”) before the tax year referred to in paragraph (a), the earlier tax year.

(2)For the purposes of this section, “the relevant benefit amount” means—

(a)if the relevant benefit is a payment otherwise than by way of a loan, an amount equal to the amount of the payment,

(b)if the relevant benefit is a payment by way of loan, an amount equal to the principal amount lent, or

(c)in any other case, an amount equal to the value of the relevant benefit.

(3)For the purposes of subsection (2)(c), the value of a relevant benefit is—

(a)its market value at the time it arises, or

(b)if higher, the cost of providing it.

(4)In subsection (3) “market value” has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.