Section HM 38 — Income Tax Act 2007: When superannuation fund investor has conditional entitlement

HM 38 When superannuation fund investor has conditional entitlement When this section applies (1) This section applies for the purposes of section HM 37 in relation to an attribution period when a person has a conditional entitlement to an investor interest in a multi-rate PIE that is a superannuation fund that meets the requirements of subsection (4) in income or property of the PIE. Attribution (2) The investor interest is treated as held by the person for the attribution period. When conditional entitlement exists (3) A person is treated as having a conditional entitlement to an investor interest if— (a) the investor interest is bought by or for the person’s employer; and (b) the person and the employer have agreed that the person will have an unconditional entitlement to the interest at the end of a vesting period that— (i) starts on the date when a contribution to the fund is made; and (ii) ends on the date when the employee becomes unconditionally entitled to the investor interest to which the contribution relates; and (bb) the vesting period is within 5 years of its end as described in paragraph (b)(ii); and (c) the agreement exists before the attribution period; and (d) the vesting period ends after the attribution period. Modifications to certain vesting periods (4) For the purposes of subsection (3)(b),— (a) for a PIE that exists on 17 May 2006, a vesting period longer than 5 years is allowed but the vesting period must not be longer than the longest vesting period allowed by the PIE at that date for an interest created on that date: (b) for a PIE that does not exist on 17 May 2006, but the investor interest has been transferred to it by a superannuation scheme in existence on that date without significant change to the interest, a vesting period of any length is allowed. Defined in this Act: attribution period , employer , income , investor interest , multi-rate PIE , PIE , superannuation fund , superannuation scheme Compare: 2007 No 97 s HL 17(2) Section HM 38: 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 38(3)(b): replaced, on 1 April 2012 (applying for the 2012–13 and later income years), by section 71(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 38(3)(bb): inserted, on 1 April 2012 (applying for the 2012–13 and later income years), by section 71(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).