Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the number of additional companies that will be within scope of Chapter 8 of Part 6A of the Taxation (International and Other Provisions) Act 2010 in the event that new subsection 259HA(5)(b) is added as set out in clause 38 of the draft Finance Bill.

This measure ensures that the UK hybrid and other mismatch rules are fully compliant with the Anti-Tax Avoidance Directive, ATAD. No estimate has been made in relation to the number of additional companies that may be within scope of the hybrid mismatch rules as a result of this proposed amendment. Clause 38 introduces a minor change to the rules in relation to permanent establishments. The expected yield from this change is negligible. HMRC are not aware of current schemes or arrangements which would fall within the scope of the hybrid mismatch rules as a result of this proposed change to Chapter 8 of Part 6A TIOPA 2010. In addition, the existing hybrid mismatch rules already deal with the majority of mismatches involving permanent establishments.