Section HM 50 — Income Tax Act 2007: Attributing credits to investors

HM 50 Attributing credits to investors When this section applies (1) This section applies when a multi-rate PIE has a tax credit other than a tax credit under subpart LS (Tax credits for multi-rate PIEs and investors). Attributing amount to investor (2) The amount of the credit attributable to an investor in an investor class of the PIE for an attribution period is calculated using the formula in subsection (3). The amount attributed to the investor is the total of the amounts calculated for each investment of the PIE and each day in the attribution period. Calculation of amount (3) The formula is— credit × class's percentage × investor's percentage days in period. Definition of items in formula (4) In the formula,— (a) credit is the amount of the credit the PIE has in relation to the investment that gives rise to the credit: (b) class's percentage is the percentage of the proceeds from the investment to which the investor class is entitled, including related tax credits: (c) investor's percentage is the percentage to which the investor is entitled of a distribution by the PIE to the investor class: (d) days in period is the number of days in the attribution period. Defined in this Act: amount , attribution period , foreign investment PIE , imputation credit , investor , investor class , multi-rate PIE , notified foreign investor , pay , PIE , prescribed investor rate , supplementary dividend , tax credit , transitional resident Compare: 2007 No 97 ss HL 29(3)–(5), YA 1 “ portfolio class fraction ” , “ portfolio investor interest fraction ” Section HM 50: 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 50(1): replaced, on 2 November 2012, by section 104(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 50 list of defined terms foreign investment PIE : inserted, on 2 November 2012, by section 104(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 50 list of defined terms notified foreign investor : inserted, on 2 November 2012, by section 104(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 50 list of defined terms supplementary dividend : inserted, on 2 November 2012, by section 104(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).