Section HM 6B — Income Tax Act 2007: Optional look-through rules for certain PIEs

HM 6B Optional look-through rules for certain PIEs When this section applies (1) This section applies when a PIE (a retail PIE ) is a zero-rated investor in another PIE (a wholesale PIE ). Look-through treatment (2) The retail PIE may choose to apply a look-through approach in relation to its investor interest, treating the attributed PIE income or attributed PIE loss as consisting of— (a) the proportion of the assessable income derived by the wholesale PIE that corresponds to the investor interest; and (b) the proportion of the expenditure or loss incurred by the wholesale PIE that corresponds to the investor interest. Sufficient information held by PIE (3) In choosing to apply this section, the retail PIE must have sufficient information to enable it to account for the income, expenditure, or loss, and to discharge its tax obligations in relation to those amounts. Inter-PIE transactions (4) In the application of subsections (1) to (3), any transaction or attribution between the wholesale PIE and retail PIE relating to the income or expenditure is ignored. Foreign investment PIEs (5) When a retail PIE that is a foreign investment variable-rate PIE derives an amount allowable under section HM 55G through having an investor interest in a wholesale PIE that meets the requirements of section HM 19B(1) , the retail PIE may treat the amount as a foreign-sourced amount. Defined in this Act: amount , assessable income , attributed PIE income , attributed PIE loss , foreign investment variable-rate PIE , , foreign-sourced amount , investor interest , PIE Section HM 6B: replaced (with effect on 1 April 2012), on 2 November 2012 (applying for the 2012–13 and later income years), by section 89(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).