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ARTICLE · 29 NOVEMBER 2021

UK Loan Structures: Changes To The Anti-hybrid Rules

Mayer Brown
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This article considers the application of recent changes to the UK's anti-hybrid rules to UK loan structures.

United KingdomTax
Matthew Mortimer
Matthew Mortimer
Kirsten Hunt
Kirsten Hunt
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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.

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