# Finance Act 2021, Paragraph 28


In section 259GB (hybrid payee deduction/non-inclusion mismatches and their extent), after subsection (2) insert—
“(2A) No excess is to be taken to arise by reason of a hybrid payee being a hybrid entity for the purposes of subsection (1)(b) so far as it is attributable to a qualifying institutional investor based in a territory under the law of which—
(a) the income or profits of the hybrid entity are not treated as income or profits of the investor, or
(b) the hybrid entity is regarded as a distinct and separate person to the investor.
(2B) Excess is attributable to such a qualifying institutional investor to the extent that ordinary income (arising by reason of the payment or quasi-payment) would fall to be brought into account by the investor if—
(a) where subsection (2A)(a) applies, under the law of the territory the income or profits of the hybrid entity were treated as income or profits of the investor, and
(b) where subsection (2A)(b) applies, under the law of the territory the hybrid entity were not regarded as a distinct and separate person to the investor.
(2C) To determine if a “qualifying institutional investor” is “based” in a particular territory for the purposes of subsections (2A) and (2B) see section 259NDA.”

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Source: https://www.legislation.gov.uk/ukpga/2021/26/schedule/7/paragraph/28 (the official version)
Page: https://openlegislation.uk/finance-act-2021/schedule-7/paragraph-28
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.