INTM553040 - Hybrids: hybrid payer (Chapter 5): conditions to be satisfied: condition B

Condition B of s259EA TIOPA 2010 requires that the payer is a hybrid entity (hybrid payer). S259BE defines a payer as a hybrid entity where the payer is regarded as a distinct and separate person for tax purposes under the law of any territory, but

• the entity’s income or profits are treated by any territory wholly or partly as taxable income or profits of a different person, or
• the entity is treated as part of another entity in a territory different to that mentioned in condition A

For example, a UK company which has elected to be disregarded for US tax purposes under the check the box regime will satisfy condition B.

See INTM550580 for further details on the relevant requirements to satisfy the definition of being a hybrid entity.