INTM555050 - Hybrids: hybrid payee (Chapter 7): conditions to be satisfied: condition C

Condition C of s259GA requires

• the payer to be within the charge to UK corporation tax for a relevant payment period, or
• an investor in a hybrid payee to be within the charge to UK corporation tax for an accounting period that falls wholly or partly within a relevant payment period, or
• a hybrid payee that is a limited liability partnership

The relevant payment period is the taxable period of the payer in which an amount may be deducted for a payment or quasi-payment.

Investor

An investor is defined at s259BE.

If the payee is a hybrid entity because its income or profits are treated as the income or profits of another person, an investor is any person who is treated as having that income.

If the payee is a hybrid entity because it is treated as a person in one territory but is not recognised as a separate and different person under the law of another territory, an investor in that payee is any entity that is

• recognised in the first territory as a separate and different person to the payee, but
• not recognised in the other territory as a separate and different person to the payee

Limited Liability Partnership

A Limited Liability Partnership (LLP) is governed by the Limited Liability Partnership Act 2000. It must be registered at Companies House and have at least two designated members. In law, an LLP is a body corporate.

Guidance on the UK tax treatment of LLPs can be found at PM131410 onwards.