Section LS 4 — Income Tax Act 2007: Tax credits for certain exiting investors

LS 4 Tax credits for certain exiting investors When this section applies (1) This section applies when an exiting investor in a multi-rate PIE who is treated under section HM 61 (Certain exiting investors zero-rated) as zero-rated has attributed PIE income from the PIE for a tax year in which the exit period falls. Amount of credit (2) The investor has a tax credit that may be used to satisfy their income tax liability for the tax year equal to any amount paid by the PIE under section HM 43(4) (Quarterly calculation option) to the Commissioner after the investor exits from the PIE for the residual value of the investor interest of the investor. Credit for PIE's foreign tax (3) An exiting investor also has a tax credit for the tax year for the amount determined under section HM 52 (Use of foreign tax credits by zero-rated and certain exiting investors) for foreign income tax paid by the PIE. Credit for PIE's other tax credits (4) An exiting investor also has a tax credit for the tax year for the amount determined under section HM 54 (Use of tax credits other than foreign tax credits by investors) for tax paid or withheld. Timing (5) The investor has the tax credit for the tax year corresponding to the income year in which the PIE's tax year ends. Defined in this Act: attributed PIE income , exit period , foreign income tax , income tax liability , income year , investor , investor interest , multi-rate PIE , pay , PIE , tax credit , tax year Compare: 2007 No 97 s LS 4 Section LS 4: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 348(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LS 4(2): amended (with effect on 1 April 2010), on 21 December 2010, by section 110 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).