Section HM 1 — Income Tax Act 2007: Outline of subpart and relationship with other Parts

HM 1 Outline of subpart and relationship with other Parts Subpart HM (1) This subpart sets out— (a) the entry and exit rules for portfolio investment entities, see sections HM 7 to HM 30 : (b) who an investor is, and what an investor class is, see sections HM 4 and HM 5 : (c) what a multi-rate PIE must do in relation to its investors and its investments, see sections HM 31 to HM 63 : (d) the treatment of losses by PIEs, see sections HM 64 to HM 70 : (e) how an entity makes an election to become a PIE, and the consequences of making the election, see sections HM 71 to HM 76 . Relationship with Parts C and D (2) The following sections apply to portfolio investment entities: (a) section CB 26 (Disposal of certain shares by portfolio investment entities): (b) section CP 1 (Attributed income of investors in multi-rate PIEs): (c) section CX 55 (Proceeds from disposal of investment shares): (d) section CX 56 (Attributed income of certain investors in multi-rate PIEs): (e) section CX 56B (Distributions to investors in multi-rate PIEs): (f) section CX 56C (Distributions to investors by listed PIEs): (g) section CX 57 (Credits for investment fees): (h) section DB 53 (Attributed PIE losses of certain investors): (i) section DB 54 (Treatment of credits for investment fees): (ib) section DB 54B (Expenditure incurred by foreign investment PIEs): (j) sections DV 2 , DV 4 , and DV 5 (which relate to transfers of expenditure to a master superannuation fund that is a PIE). Outline of provisions related to particular PIEs (2B) Certain PIEs either have special rules related to their activities or are affected by some particular rules. These are set out below: (a) for a listed PIE, see the following: (i) section CX 56C (Distributions to investors by listed PIEs): (ii) section EZ 63 (Disposal and acquisition upon entry): (iii) section HM 2(3) , which relates to listed PIEs becoming multi-rate PIEs: (iv) section HM 18 , which describes how an unlisted company becomes a listed PIE: (v) section HM 19 , which relates to distributions of listed PIEs: (vi) section HM 21(4) , for a transitional provision for investors in listed PIEs: (vii) section HM 28 , for the consequences when a listed PIE does not meet a distributional requirement: (viii) sections MB 1(5) and MB 11 , which relate to family scheme income: (b) for a life fund PIE, see the following: (i) section CX 55 (Proceeds from disposal of investment shares): (ii) section DR 1(2) (Policyholder base allowable deduction of life insurer): (iii) section EY 1(2) (What this subpart does): (iv) section EY 2(6) (Policyholder base): (v) section HM 4 , which is about who can be an investor: (vi) section HM 10 , which excludes entities other than life fund PIEs carrying on a business of life insurance: (vii) section HM 17 , for an additional entry rule for PIEs other than life fund PIEs: (viii) section HM 19 , for an additional entry rule for listed PIEs other than life fund PIEs: (ix) section HM 26 , for an exit rule for entities other than life fund PIEs starting a life insurance business: (x) section OB 35B (ICA debit for transfer from tax pooling account for policyholder base liability): (xi) section OP 33B (Consolidated ICA debit for transfer from tax pooling account for policyholder base liability): (c) for a foreign investment PIE, see the following: (i) section CX 56 (Attributed income of certain investors in multi-rate PIEs): (ii) section CX 56B (Distributions to investors in multi-rate PIEs): (iii) section DB 54B (Expenditure incurred by foreign investment PIEs): (iv) section HM 6B , for the optional look-through treatment of income derived from other PIEs: (v) section HM 19B , for the particular requirements for foreign investment zero-rate PIEs: (vi) section HM 19C , for the particular requirements for foreign investment variable-rate PIEs: (vii) section HM 35C , which is about the determination of the income tax liability of a foreign investment PIE and the calculation of attributed PIE income for a notified foreign investor: (viii) sections HM 41(4) and HM 44(1B) , for restrictions on the calculation method available to foreign investment PIEs: (ix) section HM 44B , for an additional calculation method for foreign investment PIEs: (x) section HM 47 , which is about the calculation of the tax liability or tax credit of a foreign investment PIE: (xi) sections HM 55C to HM 55H , for the special requirements for foreign investment PIEs and their investors: (xii) section HM 71B , for the election mechanism for foreign investment PIEs: (xiii) schedule 6 , tables 1 and 1B, for the prescribed tax rates for certain non-resident investors in foreign investment PIEs and the rates applying to certain sources of income attributed to investors: (xiv) section 28D of the Tax Administration Act 1994, for the information required from notified foreign investors. Relationship with subpart LS (3) Subpart LS (Tax credits for multi-rate PIEs and investors) contains the rules relating to the amount and use of a tax credit arising under this subpart. Defined in this Act: amount , investor , investor class , multi-rate PIE , PIE , portfolio investment entity , tax credit Compare: 2007 No 97 ss HL 1, HL 2 Section HM 1: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HM 1(2)(ib): inserted, on 29 August 2011, by section 51(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 1(2B) heading: inserted, on 29 August 2011, by section 51(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 1(2B): inserted, on 29 August 2011, by section 51(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).