The aim of the group mismatch scheme legislation is to counter transactions that seek to exploit asymmetries in the accounting (and hence) tax treatment of transactions involving loan relationships and derivatives in order to obtain a tax advantage. Where the legislation applies no scheme profit or loss arising from a group mismatch scheme will be brought into account for the purposes of the loan relationships or derivative contracts legislation and nor may such amounts be otherwise brought into account for tax purposes. For HMRC guidance see CFM77500 onwards.
Meaning of group mismatch scheme
A scheme is a group mismatch scheme if1:
- Ìý
•ÌýÌýÌýÌý the parties to the scheme are, or include, members of the same group (see below) and
- Ìý
•ÌýÌýÌýÌý condition A or B is met
In determining whether condition A or B is met the fact that where CTA 2010, s 938A applies any profits or losses arising in respect of the scheme are to be disregarded for tax purposes, is to be ignored2. Further, in determining whether
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Web page updated on 17 Mar 2025 16:46