835AO Withholding tax mismatch outcome.

(1) A withholding tax mismatch outcome shall arise where—

(a) an entity enters into a hybrid transfer (within the meaning of Chapter 4), and

(b) it is reasonable to consider that the purpose of the hybrid transfer is to secure relief for more than one party to the hybrid transfer in respect of an amount of tax withheld at source.

(2) A withholding tax mismatch outcome shall, notwithstanding anything in Schedule 24 to the contrary, be neutralised by the relief available in respect of an amount of tax withheld at source being reduced by the following fraction—

A/B

where—

A is the profit of the entity from the hybrid transfer on which domestic tax finally falls to be borne, and

B is the gross income of the entity under the hybrid transfer.