Income Tax (Trading and Other Income) Act 2005 section 23A

Application of section 23E: conditions

Section 23A sets out the five conditions (A to E) that must all be met before a tax charge on relevant benefits under section 23E can apply to a trader, professional or person carrying on a vocation.

• Condition A requires that a person ("T") is or has been carrying on a trade, profession or vocation, whether alone or in partnership — this is the "relevant trade"
• Conditions B and C require that there is an arrangement connected with the relevant trade that is, in essence, a means of providing relevant benefits, and that such a benefit has actually arisen to T, a person connected with T, or (where enjoyment conditions are met) to any other person
• Condition D requires that the relevant benefit can reasonably be linked — directly or indirectly — to a qualifying third party payment
• Condition E requires that T, or a person connected with T, can reasonably be expected to obtain a tax advantage as a result of the arrangement