Revenue Note for Guidance
This section sets out what is meant by withholding tax mismatch outcome and provides the rule to neutralise such an outcome.
(1) Withholding tax mismatch outcome
A withholding tax mismatch outcome shall arise where—
(2) The rule for neutralising a withholding tax mismatch outcome
A withholding tax mismatch outcome shall, notwithstanding anything in Schedule 24 to the contrary, be neutralised by reducing the withholding tax relief available by the following fraction—
A/B
where—
A is the taxable profit from the hybrid transfer arising to the entity, and
B is the gross income of the entity under the hybrid transfer.
Relevant Date: Finance Act 2019