F1PART 6AHybrid and other mismatches
CHAPTER 4Hybrid transfer deduction/non-inclusion mismatches
Introduction
259DOverview of Chapter
1
This Chapter contains provision that counteracts deduction/non-inclusion mismatches that it is reasonable to suppose would otherwise arise from payments or quasi-payments as a consequence of hybrid transfer arrangements.
2
The Chapter counteracts mismatches where the payer or a payee is within the charge to corporation tax and does so by altering the corporation tax treatment of the payer or a payee.
3
Section 259DA contains the conditions that must be met for this Chapter to apply.
4
Section 259DB defines “hybrid transfer arrangement”.
5
Section 259DC defines “hybrid transfer deduction/non-inclusion mismatch” and provides how the amount of the mismatch is to be calculated.
6
Section 259DD contains definitions of certain terms used in section 259DC.
7
Section 259DE contains provision in connection with excluding mismatches from counteraction by the Chapter where they arise as a consequence of the tax treatment of a financial trader.
8
Section 259DF contains provision that counteracts the mismatch where the payer is within the charge to corporation tax for the payment period.
9
Section 259DG contains provision that counteracts the mismatch where a payee is within the charge to corporation tax and neither section 259DF nor any equivalent provision under the law of a territory outside the United Kingdom fully counteracts the mismatch.
10
See also section 259BB for the meaning of “payment”, “quasi-payment”, “payment period”, “relevant deduction”, “payer” and “payee”.
Pt. 6A inserted (with effect in accordance with Sch. 10 paras. 18-21 of the amending Act) by Finance Act 2016 (c. 24), Sch. 10 para. 1