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HM 27: When multi-rate PIE no longer meets investor interest adjustment requirements
or “Losing PIE status when investor interest adjustment rules aren't followed”
You could also call this:

“What happens when a listed investment fund no longer qualifies as a PIE”

If you are a listed PIE (Portfolio Investment Entity), you can lose your PIE status right away in certain situations. This can happen if you don’t meet the rules in section HM 19. It can also happen if you stop being listed on a recognised stock exchange and don’t choose to cancel your PIE status. If you do choose to cancel your PIE status and then stop being listed, you have 2 years (or longer if the Commissioner allows) before you lose PIE status. Also, when you’re not listed, if you have less than 100 shareholders, you’ll lose PIE status immediately.

The Commissioner can give you more than 2 years to keep your PIE status after you stop being listed and choose to cancel. They’ll do this if they think it’s fair in your situation.

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Next up: HM 29: Choosing to cancel status

or “How to cancel your status as a Portfolio Investment Entity (PIE)”
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Part H Taxation of certain entities
Portfolio investment entities: Exit rules

HM 28When listed PIE no longer meets requirements

  1. A listed PIE loses PIE status immediately if—

  2. it fails to meet the requirements of section HM 19:
    1. it does not make an election under section HM 29 to cancel PIE status and ceases to be listed by a recognised exchange:
      1. it makes an election under section HM 29 to cancel PIE status and, after the entity ceases to be listed by a recognised exchange, a period of 2 years from the delisting, or a longer period allowed by the Commissioner under subsection (2), expires:
        1. when the entity is not listed by a recognised exchange, the number of shareholders in the entity is less than 100.

          1. The Commissioner may grant an extension of the 2-year period referred to in subsection (1)(c) if the extension is reasonable in the circumstances.

          Notes
          • Section HM 28: replaced, on , by section 219 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).