Section HM 42 — Income Tax Act 2007: Exit calculation option

HM 42 Exit calculation option When this section applies (1) This section applies when a multi-rate PIE chooses for a tax year to calculate its income tax liability for exiting investors and remaining investors. The PIE must notify the Commissioner under section 31B of the Tax Administration Act 1994 of this election. Calculation for exiting investors (2) For an investor whose interest has reached the exit level during the tax year, the PIE must calculate its income tax liability under section HM 47 for the investor and the relevant exit period. The exit level and exit periods are determined under sections HM 62 and HM 63 . Calculations for investors for non-exit periods (3) For investors and periods in the income year other than exit periods, the PIE must calculate its income tax liability under section HM 47 for the relevant period. Payment to Commissioner (4) The PIE must pay to the Commissioner— (a) the amount of income tax liability for an exiting investor for the exit period— (i) within 1 month after the end of the month of withdrawal; or (ii) if the month of withdrawal is November, by the following 15 January; and (b) the rest of the PIE's income tax liability for the tax year within 1 month after the end of the tax year for remaining investors in the PIE at the end of the tax year, after allowing for any payment under paragraph (a) or any voluntary payment under section HM 45 . Provisional tax rules (5) The PIE is not required to pay provisional tax under subpart RC (Provisional tax) for the tax year. Defined in this Act: amount , Commissioner , exit level , exit period , income tax liability , income year , investor , multi-rate PIE , pay , PIE , provisional tax , tax year Compare: 2007 No 97 s HL 24(1)–(4) Section HM 42: 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).