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

Relevant debt relief circumstances: introductory

Section 259NEB introduces the concept of "relevant debt relief circumstances" for the purpose of determining the extent of hybrid mismatch deduction/non-inclusion mismatches under section 259CB(3).

• Relevant debt relief circumstances arise only where a payment or quasi-payment involves the release of a liability under a debtor loan relationship, and one of several specified sets of conditions (in sections 259NEC to 259NEF) is met.
• The section defines key terms used across the related provisions, including "the relevant release" (the specific release of liability in question), "loan relationship", "amortised cost basis of accounting", "connected companies relationship", and "deemed release" and "relevant rights".
• These definitions draw on existing Corporation Tax Act 2009 provisions governing loan relationships, ensuring consistency with the wider corporate debt regime.
• The section acts as a gateway: unless both conditions are satisfied — a debt release and one of the qualifying circumstances — the debt relief exception from hybrid mismatch rules does not apply.