INTM550040 - Hybrids: introduction: scope of Part 6A, TIOPA 2010

Part 6A targets hybrid mismatches in the following circumstances

Deduction/non-inclusion outcomes involving

  • Hybrid financial instruments
  • Hybrid transfers
  • Hybrid entity payers
  • Hybrid entity payees
  • Permanent establishments

Double deduction outcomes involving

  • Hybrid entities
  • Dual resident companies
  • Permanent establishments

The legislation also includes rules to deal with arrangements where a mismatch arises entirely outside the UK and is part of the same ‘over-arching arrangement’ as a UK transaction: such arrangements are known as ‘imported’ mismatches. These additional rules are needed to ensure that the legislation cannot be by-passed by routing a mismatch via a third jurisdiction. The imported mismatch rules deal with double deduction or deduction/non-inclusion imported mismatch outcomes involving:

  • Hybrid financial instruments
  • Hybrid transfers
  • Hybrid entity payees
  • Hybrid entity payers
  • Permanent establishments
  • Dual resident companies