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HM 21: Exceptions for certain investors
or “Special rules allow certain investors to exceed investment limits”
You could also call this:

“Certain funds and investors are exempt from specific portfolio investment entity rules”

If you’re part of an investor class of an entity, you don’t have to follow some rules in sections HM 14(1) and HM 15 if your class is like a unit trust that meets certain requirements. These requirements are found in parts (a) and (c) to (e) of the definition of a public unit trust.

You also don’t need to follow these rules if your investor class is part of a fund, trust, or class that’s listed in schedule 29, part B. This schedule talks about listed investors for portfolio investment entities.

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Next up: HM 23: Exceptions for foreign PIE equivalents

or “Special rules for foreign PIE equivalents investing in PIEs and PIEs investing in foreign PIE equivalents”
Next

Part H Taxation of certain entities
Portfolio investment entities: Exceptions

HM 22Exceptions for certain funds

  1. Sections HM 14(1) and HM 15 do not apply to an investor class of an entity if, treating the class as a unit trust, it would meet the requirements of 1 or more of paragraphs (a) and (c) to (e) of the definition of public unit trust.

  2. Sections HM 14(1) and HM 15 do not apply in the case of an investor class of an entity that is a fund, trust, or class listed in schedule 29, part B (Portfolio investment entities: listed investors).

Compare
  • ss HL 6(3), HL 9(2)
Notes
  • Section HM 22: inserted, on (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 22(1): amended (with effect on 1 April 2010), on (applying for the 2010–11 and later income years), by section 91(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).