HM 42Exit calculation option

1. This section applies when a multi-rate PIE chooses for a tax year to calculate its income tax liability for exiting investors and remaining investors. The PIE must notify the Commissioner under section 31B of the Tax Administration Act 1994 of the calculation option and of the applicable attribution period.

2. For an investor whose interest has reached the exit level during the tax year, the PIE must calculate its income tax liability under section HM 47 for the investor and the relevant exit period. The exit level and exit periods are determined under sections HM 62 and HM 63.

3. For investors and periods in the income year other than exit periods, the PIE must calculate its income tax liability under section HM 47 for the relevant period.

4. The PIE must pay to the Commissioner—

5. the amount of income tax liability for an exiting investor for the exit period—
   1. within 1 month after the end of the month of withdrawal; or
   2. if the month of withdrawal is November, by the following 15 January; and
6. the rest of the PIE's income tax liability for the tax year within 1 month after the end of the tax year for remaining investors in the PIE at the end of the tax year, after allowing for any payment under paragraph (a) or any voluntary payment under section HM 45.

7. The PIE is not required to pay provisional tax under subpart RC (Provisional tax) for the tax year.