Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

hybrid

The term ‘hybrid’ is often used in relation to entities or financial instruments which are treated differently for tax purposes in different countries. An entity might be transparent in one country, so that its profits accrue directly to the owners for tax purposes, but opaque in another, so that the entity is taxed directly irrespective of the capacity of the owners.

An instrument might be treated as a share (or equity) in one country but as debt (or loan capital) in another country. The BEPS...