INTM551120 - Hybrids: financial instruments (Chapter 3): extent of the mismatch

If conditions A to D of s259CA TIOPA 2010 are satisfied, the next step is to establish the extent of any hybrid or other mismatch.

S259CB determines the extent of the hybrid or other mismatch in respect of a payment or quasi-payment if either or both of case1 or 2 applies.

Case 1 – see INTM551130, or

Case 2 – see INTM551140, or

both Case 1 and Case 2.

It is necessary to apply S259CB to determine whether there is a hybrid or otherwise impermissible deduction/non-inclusion mismatch, which in turn determines whether condition C is satisfied, see INTM551100.