Section DV 4B — Income Tax Act 2007: Carry forward of expenditure by member funds investing in portfolio investment entities

DV 4B Carry forward of expenditure by member funds investing in portfolio investment entities When this section applies (1) This section applies when— (a) a master fund that is a multi-rate PIE has a deduction under section DV 2(8B) for an income year for expenditure transferred to it by a member fund; and (b) the amount of the expenditure that meets the tests set out in section DV 2(2) is more than the amount transferred for the income year, so there is surplus expenditure for the member fund. Member fund carrying expenditure forward (2) The member fund may carry forward the surplus expenditure for transfer under section DV 2(8B) in a later income year. Expenditure as loss balance (3) If the member fund carries forward surplus expenditure in an income year, the member fund may treat some or all of the expenditure as a loss balance for the corresponding tax year. Defined in this Act: amount , deduction , income year , loss balance , master fund , multi-rate PIE , tax year Section DV 4B: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).