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

Meaning of "relevant benefit"

Section 23B defines what constitutes a "relevant benefit" for the purposes of the disguised remuneration provisions relating to trading income.

• A "relevant benefit" is broadly defined to cover any payment (including loans), any transfer of money's worth, or any other benefit of any description
• Where another person takes on a liability belonging to the trader (T), this counts as a relevant benefit provided to T
• Where someone other than T assumes a liability of a person (C) who is or has been connected with T, this is treated as a relevant benefit provided to C
• The term "loan" is defined widely to include any form of credit and any payment that merely purports to be made by way of a loan