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

Anti-avoidance

Section 23G prevents taxpayers from using arrangements designed to circumvent the tax charge on relevant benefits under section 23E.

• Any arrangements whose main purpose (or one of whose main purposes) is to avoid section 23E applying to a relevant benefit must be disregarded entirely
• This applies whether the arrangements target a single relevant benefit or multiple relevant benefits, and regardless of whether those benefits go to the same person
• Where disregarding the arrangements would shift the date a benefit arises from before 6 April 2017 to on or after that date, the benefit is treated as arising on the date it would have arisen without the arrangements
• The effect is to preserve the original timing of the benefit so that avoidance schemes cannot exploit the 6 April 2017 commencement date to escape the charge