Taxation (International and Other Provisions) Act 2010 section 259L

Adjustments where suppositions cease to be reasonable

Section 259L provides for corrective adjustments to be made when assumptions originally made under the hybrid mismatch rules turn out to be wrong or are no longer reasonable.

• Where a reasonable assumption made under the hybrid mismatch rules later proves incorrect or ceases to be reasonable, just and reasonable consequential adjustments may be made.
• Adjustments can be made by HMRC or the taxpayer through assessments, amended assessments, claim modifications or other means.
• Any adjustments are subject to the normal statutory time limits that apply under other legislation outside the hybrid mismatch rules.
• Adjustments cannot be made on the basis that ordinary income arises to a payee after the payee's last permitted taxable period for a payment or quasi-payment — separate rules in section 259LA deal with those cases instead.