[F123ETax treatment of relevant benefitsU.K.
(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.]
Textual Amendments
F1Ss. 23A-23H and cross-heading inserted (16.11.2017) (with effect in accordance with s. 35(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 35(2)
Modifications etc. (not altering text)
C1S. 23E modified by 2017 c. 32, Sch. 12 para. 1(3A)-(3G) (as inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 16(5)(c))
C2S. 23E modified (16.11.2017) (with effect in accordance with s. 35(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 12 para. 1(3) (as amended (22.7.2020) by Finance Act 2020 (c. 14), s. 16(5)(b)(i))
C3Ss. 23A-23H modified (16.11.2017) (with application in accordance with Sch. 12 para. 1(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 12 para. 1(1) (as amended (22.7.2020) by Finance Act 2020 (c. 14), s. 16(5)(a))