UK:
UK Loan Structures: Changes To The Anti-hybrid Rules
29 November 2021
Mayer Brown
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Finance Act 2021 has introduced key changes to the UK's
anti-hybrid rules, which will have particular relevance for
structures under which a UK borrower raises loan finance from
connected and external lenders. The changes relate to the incidence
of dual inclusion income and the treatment of hybrid mismatches
that are attributable to certain minority and qualifying
institutional investors. They also amend the imported mismatch
provisions within the anti-hybrid rules, amongst other areas. In
general, the changes will improve the application of these rules to
UK loan and other investment structures for affected taxpayers, but
not in all respects.
Matthew Mortimer and Kirsten Hunt (Mayer Brown) consider the
application to UK loan structures of recent changes to the UK's
anti-hybrid rules.
Finance Act 2021 has recently made important changes to the
UK's anti-hybrid rules in TIOPA 2010 Part 6A. The changes not
only apply to structures under which a UK company borrows money
from connected and external lenders (referred to below as...
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