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Legislation
Income Tax Act 2007

Crossheading Charge where power to enjoy income

  • Section 720 Charge to tax on income treated as arising under section 721
  • Section 720A Transfers by closely-held companies
  • Section 721 Individuals with power to enjoy income as a result of relevant transactions
  • Section 721A Meaning of “protected foreign-source income” in section 721
  • Section 721B Section 721A: tainting
  • Section 722 When an individual has power to enjoy income of person abroad
  • Section 723 The enjoyment conditions
  • Section 724 Special rules where benefit provided out of income of person abroad
  • Section 725 Reduction in amount charged where controlled foreign company involved
  • Section 725A Recovery of tax paid as a result of section 721
  • Section 726 Qualifying new residents and remittance-basis users: “foreign” deemed income
  1. Charge where power to enjoy income
  2. The enjoyment conditions

Section 723 | The enjoyment conditions

From legislation.gov.uk

(1)Condition A is that the income is in fact so dealt with by any person as to be calculated at some time to enure for the benefit of the individual, whether in the form of income or not.

(2)Condition B is that the receipt or accrual of the income operates to increase the value to the individual—

(a)of any assets the individual holds, or

(b)of any assets held for the individual's benefit.

(3)Condition C is that the individual receives or is entitled to receive at any time any benefit provided or to be provided out of the income or related money.

(4)In subsection (3) “related money” means money which is or will be available for the purpose of providing the benefit as a result of the effect or successive effects—

(a)on the income, and

(b)on any assets which directly or indirectly represent the income,

of the associated operations referred to in section 721(2).

(5)Condition D is that the individual may become entitled to the beneficial enjoyment of the income if one or more powers are exercised or successively exercised.

(6)For the purposes of subsection (5) it does not matter—

(a)who may exercise the powers, or

(b)whether they are exercisable with or without the consent of another person.

(7)Condition E is that the individual is able in any manner to control directly or indirectly the application of the income.

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