SCHEDULE 7 Hybrid and other Mismatches | Part 4 | Deemed Dual Inclusion Income | Finance Act 2021 C26

Part 4 Deemed Dual Inclusion Income

Finance Act 2021 (2021 c 26) | Legislation

Part 4 Deemed Dual Inclusion Income

Part 6A of TIOPA 2010 (hybrid and other mismatches) is amended as follows.

(1) Chapter 5 (hybrid payer deduction/non-inclusion mismatches) is amended as follows.

(2) In section 259EC (counteraction where the hybrid payer is within the charge to corporation tax for the payment period), in subsection (4) omit “arises in connection with the arrangement mentioned in section 259EA(2) and”.

(3) After subsection (5) insert—

“(6) For the purposes of subsection (4)(b) the reference to ordinary income of an investor in the payer for a permitted taxable period for the purposes of any tax charged under the law of an investor jurisdiction is taken to include a reference to an amount that meets the following requirements.

(7) The requirements are that—

(a) the amount may not be deducted under the law of any territory from the income of any person for the purposes of calculating taxable profits for a relevant taxable period;

(b) in the case of a person resident for tax purposes in a zero-tax territory, the amount could not be deducted from the income of the person for the purposes of calculating taxable profits for a relevant taxable period