Textual Amendments
F1Pt. 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
(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 because a payee is a hybrid entity.
(2)The Chapter counteracts mismatches by—
(a)altering the corporation tax treatment of the payer for the payment period,
(b)treating income chargeable to corporation tax as arising to an investor who is within the charge to corporation tax, or
(c)treating income chargeable to corporation tax as arising to a payee that is a hybrid entity and a limited liability partnership.
(3)Section 259GA contains the conditions that must be met for this Chapter to apply.
(4)Section 259GB defines “hybrid payee deduction/non-inclusion mismatch” and provides how the amount of the mismatch is to be calculated.
(5)Section 259GC contains provision that counteracts the mismatch where the payer is within the charge to corporation tax for the payment period.
(6)Section 259GD contains provision that counteracts the mismatch where an investor in the payee is within the charge to corporation tax and the mismatch is not fully counteracted by section 259GC or an equivalent provision under the law of a territory outside the United Kingdom.
(7)Section 259GE contains provision that counteracts the mismatch where a payee is a hybrid entity and limited liability partnership and the mismatch is not otherwise fully counteracted.
(8)See also—
(a)section 259BB for the meaning of “payment”, “quasi-payment”, “payment period”, “relevant deduction”, “payer” and “payee”;
(b)section 259BE for the meaning of “hybrid entity”, “investor” and “investor jurisdiction”.]