Section HM 36 — Income Tax Act 2007: Calculating amounts attributed to investors

HM 36 Calculating amounts attributed to investors Calculating amount (1) The amount of attributed PIE income or attributed PIE loss for an income year for an investor in a multi-rate PIE is the total of the amounts calculated using the formula in subsection (2) for— (a) each attribution period in the income year; and (b) each day in the attribution period; and (c) each investor class to which the investor belongs on the day. Formula (2) The formula is— percentage × (income − loss) − (expenses − credits for fees). days in period Definition of items in formula (3) In the formula,— (a) percentage is the percentage of the investor’s entitlement to a distribution by the PIE to the investor class: (b) income is the amount of taxable income determined under section HM 35(5) and (7) for the period: (c) loss is the amount of tax loss determined under section HM 35(5) and (7) for the period: (d) days in period is the number of days in the period: (e) expenses is the total amount for the day in the period of— (i) fees for management or administration services paid from or charged to the account of the investor as a member of the investor class when the services are ongoing for the investor class: (ii) expenditure of the investor as a member of the investor class and transferred under subpart DV (Expenditure specific to certain entities) to the PIE: (f) credits for fees is the amount of the credit for the fee paid or credited by the PIE to the account of the investor as a member of the investor class on the day in the period. Treatment of attributed loss for PIEs paying provisional tax (4) Despite subsection (3), an investor in a multi-rate PIE that chooses under section HM 44 to pay provisional tax has no attributed PIE loss. When derived or incurred (5) The investor is treated as deriving the attributed PIE income or incurring the attributed PIE loss in the income year of the investor in which the end of the PIE's income year falls. Defined in this Act: amount , attributed PIE income , attributed PIE loss , attribution period , income , income year , investor , investor class , multi-rate PIE , pay , PIE , provisional tax , tax loss , taxable income Compare: 2007 No 97 s HL 26 Section HM 36: 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 36(1): amended, on 29 August 2011, by section 70(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 36(3)(e)(i): substituted, on 29 August 2011, by section 70(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 36 list of defined terms pay : inserted, on 29 August 2011, by section 70(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).