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

Adjustments in light of later treatment for accounting purposes

Section 259LB enables adjustments to be made where the accounting treatment in a later period reduces or eliminates a mismatch that has already been counteracted under the hybrid mismatch rules.

• Where a company's tax deduction has been reduced under the hybrid mismatch rules, and a later accounting credit reverses some or all of the original debit, adjustments may be made to reflect the changed position
• Adjustments must be just and reasonable, and apply only to the portion of the original debit that was both subject to the hybrid mismatch restriction and subsequently reversed by the credit
• Adjustments can be made by HMRC or the company through assessments, amendments to assessments, modification of claims, or any other appropriate means
• The power to make these adjustments overrides any normal statutory time limits that would otherwise prevent changes to earlier periods