Hybrid and other mismatches rules: continuation of regulatory capital exemption

HMRC has published a policy paper confirming that new regulations will ensure that the existing exemption from counteraction under the hybrid and other mismatch rules for certain hybrid capital and debt instruments issued by banks continues to apply from 1 January 2023 (when it had originally been set to expire). Draft regulations were subject to consultation from 19 May to 30 June 2022 and no changes have been made to the draft regulations. The measure will have effect from 1 January 2023.