HMRC has published draft guidance on the application of the hybrid mismatch legislation in Finance Act 2016 Sch 10, which takes effect from 1 January 2017. When finalised, this guidance will be incorporated into HMRC’s international manual. Running to 400 pages, the guidance includes examples based upon a selection of those contained within the OECD’s ‘Final report on neutralising the effects of hybrid mismatch arrangements’, with additional draft examples dealing with hybrid transfers and permanent establishments.
HMRC invites comments on the draft guidance by 10 March 2017. See http://bit.ly/2gIm2ED.
The government also announced on 5 December that it would be introducing further legislation in Finance Bill 2017 to make two minor changes to the hybrid mismatch regime. These changes will:
ensure that amortisation deductions are not treated as relevant deductions for the purposes of chapters 5, 6, 7 or 8 of the hybrid rules; and
amend chapters 3 and 4 of the hybrid rules to remove the requirement to make a formal claim to disregard a temporary mismatch, where an amount of income is brought into account in a later period.
Both changes will be effective from 1 January 2017.
HMRC has published draft guidance on the application of the hybrid mismatch legislation in Finance Act 2016 Sch 10, which takes effect from 1 January 2017. When finalised, this guidance will be incorporated into HMRC’s international manual. Running to 400 pages, the guidance includes examples based upon a selection of those contained within the OECD’s ‘Final report on neutralising the effects of hybrid mismatch arrangements’, with additional draft examples dealing with hybrid transfers and permanent establishments.
HMRC invites comments on the draft guidance by 10 March 2017. See http://bit.ly/2gIm2ED.
The government also announced on 5 December that it would be introducing further legislation in Finance Bill 2017 to make two minor changes to the hybrid mismatch regime. These changes will:
ensure that amortisation deductions are not treated as relevant deductions for the purposes of chapters 5, 6, 7 or 8 of the hybrid rules; and
amend chapters 3 and 4 of the hybrid rules to remove the requirement to make a formal claim to disregard a temporary mismatch, where an amount of income is brought into account in a later period.
Both changes will be effective from 1 January 2017.
