EIM47210 - Pt 7A ITEPA 2003: CCG: relevant arrangement to provide A-linked benefits

ITEPA 2003: section 554AA(1)(b) and (3), section 554AF(5)

It has to be reasonable to suppose that the relevant arrangement is wholly or partly concerned with providing what are described as A-linked benefits, payments or loans.

The description of these being “A-linked” refers to the fact that the employee or director does not have to be the direct recipient of the payment, benefit or loan to be chargeable under the CCG.

For the purposes of the CCG, a payment, benefit or loan is A-linked in the following circumstances:

• it is provided to the employee or director personally or it is made to a person chosen by them or within a class of persons chosen by them, or;
• it is provided to a person on the employee or director’s behalf or at their direction or request, or;
• it is provided to a person linked with the employee or director and it is reasonable to suppose that one of the main reasons for it being provided is that the person receiving it is linked with the employee or director

These safeguards prevent the employee or director being able to avoid a charge simply by specifying a different recipient of the payment, benefit or loan.

For the purposes of deciding whether an arrangement is concerned with the provision of A-linked benefits, all relevant circumstances are to be taken into account to get to the essence of the matter.