The Hybrid and Other Mismatches (Financial Instruments: Excluded Instruments) Regulations 2019

JurisdictionUK Non-devolved
CitationSI 2019/1345

2019 No. 1345

Corporation Tax

The Hybrid and Other Mismatches (Financial Instruments: Excluded Instruments) Regulations 2019

Made 14th October 2019

Laid before the House of Commons 15th October 2019

Coming into force 1st January 2020

The Treasury, in exercise of the powers conferred by section 259N(3)(b) of the Taxation (International and Other Provisions) Act 20101, make the following Regulations:

S-1 Citation, commencement and effect

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Hybrid and Other Mismatches (Financial Instruments: Excluded Instruments) Regulations 2019 and come into force on 1st January 2020.

(2) These Regulations have effect in relation to—

(a)

(a) payments2made on or after 1st January 2020 but before 1st January 2023, and

(b)

(b) quasi-payments3in relation to which the payment period4begins on or after 1st January 2020 and ends before 1st January 2023.

(3) Where a payment period begins before 1st January 2020 and ends on or after that date (“the straddling period”)—

(a)

(a) so much of the straddling period as falls before 1st January 2020, and so much of that period as falls on or after that date, are to be treated as separate taxable periods5, and

(b)

(b) where it is necessary to apportion an amount for the straddling period to the two separate taxable periods, it is to be apportioned—

(i) on a time basis according to the respective length of the separate taxable periods, or

(ii) if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(4) Where a payment period begins on or before 31st December 2022 and ends after that date (“the straddling period”)—

(a)

(a) so much of the straddling period as falls on or before 31st December 2022, and so much of that period as falls after that date, are to be treated as separate taxable periods, and

(b)

(b) where it is necessary to apportion an amount for the straddling period to the two separate taxable periods, it is to be apportioned—

(i) on a time basis according to the respective length of the separate taxable periods, or

(ii) if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.

S-2 Financial instruments: excluded instruments

Financial instruments: excluded instruments

2.—(1) An instrument issued to an associated enterprise is not a financial instrument within section 259N of the Taxation...

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