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HM 53: Use of tax credits other than foreign tax credits by PIEs
or “How PIEs can use certain tax credits for their income tax”
You could also call this:

“How investors can use certain tax credits from multi-rate PIE funds”

If you’re an investor in a multi-rate PIE (a type of investment fund), you might be able to use some tax credits. This applies if you’re a zero-rated investor or if you’re leaving the fund and are treated as zero-rated.

The tax credits we’re talking about here are any credits under Part L, except for foreign income tax credits. If you have these credits, you can use them to lower your income tax bill for the year.

The amount of the tax credit you can use is the same as the amount that was given to you by the fund.

Remember, this only works for certain types of investors and certain types of tax credits. If you’re not sure if this applies to you, it’s a good idea to ask for help.

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Next up: HM 55: Tax credits for losses

or “Multi-rate PIEs can get tax credits for negative tax calculations”
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Part H Taxation of certain entities
Portfolio investment entities: Using tax credits

HM 54Use of tax credits other than foreign tax credits by investors

  1. This section applies when a multi-rate PIE has a tax credit under Part L (Tax credits and other credits) other than a tax credit under subpart LJ (Tax credits for foreign income tax), that is attributable in a tax year to an investor who is—

  2. a zero-rated investor:
    1. an exiting investor who is treated under section HM 61 as zero-rated.

      1. The investor may use the tax credit under section LS 3 or LS 4 (which relate to the use of tax credits) to satisfy their income tax liability for the tax year.

      2. The amount of the tax credit is the amount attributed.

      Compare
      • s HL 29(7)(b)
      Notes
      • Section HM 54: 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).