Legislation – Finance Act 2021
Changes to legislation:
There are currently no known outstanding effects for the Finance Act 2021, Paragraph 27.
Changes to Legislation
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
SCHEDULE 7Hybrid and other mismatches
PART 11Exempt investors in hybrid entities
27
(1)
Section 259EB (hybrid payer deduction/non-inclusion mismatches and their extent) is amended in accordance with sub-paragraphs (2) and (3).
(2)
In subsection (3), at the beginning insert “
.
Subject to subsections (4A) to (4C)
”
(3)
“(4A)
No excess is to be taken to arise by reason of a hybrid payer being a hybrid entity for the purposes of subsection (1)(b) so far as it is attributable to a qualifying institutional investor based in a territory under the law of which—
(a)
the income or profits of the hybrid entity are treated as income and profits of the investor, or
(b)
the hybrid entity is not regarded as a distinct and separate person to the investor.
(4B)
Excess is attributable to such a qualifying institutional investor to the extent that ordinary income (arising by reason of the payment or quasi-payment) would fall to be brought into account by the investor if—
(a)
where subsection (4A)(a) applies, under the law of the territory the income or profits of the hybrid entity were not treated as income and profits of the investor, and
(b)
where subsection (4A)(b) applies, under the law of the territory the hybrid entity were regarded as a distinct and separate person to the investor.
(4C)
To determine if a “qualifying institutional investor” is “based” in a particular territory for the purposes of subsections (4A) and (4B) see section 259NDA.”