Chapter 9

Structured arrangements

Summary

The chapter sets out the anti-hybrid rules relating to structured arrangements. Essentially a structured arrangement is an arrangement where a hybrid mismatch outcome has been priced into the terms or the arrangement is designed to produce a hybrid mismatch outcome. An arrangement will not be a structured arrangement where the taxpayer or an associated enterprise of the taxpayer could not reasonably have been aware of the hybrid mismatch and did not share in the value of the tax benefit arising from the hybrid mismatch.

A structured arrangement is not confined to transactions between associated enterprises.

835AT Application of chapter

Summary

This section sets out the entities and transaction(s) to which this chapter applies.

Details

(1) This section applies to a company which is within the charge to domestic tax.

(2) Notwithstanding the application sections 835AC, 835AE, 835AH and 835AK of the other chapters in this Part, this Chapter shall apply where a mismatch outcome arises under a structured arrangement. Essentially, this section applies the anti-hybrid rules to certain transactions irrespective of whether the parties to the transaction meet the associated enterprise test.

Relevant Date: Finance Act 2021