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HM 62: Exit levels for investors
or “Rules for when you must leave a multi-rate PIE investment”
You could also call this:

“When an investor's stake in a multi-rate PIE investment ends”

You need to know about exit periods if you’re investing in a multi-rate PIE. An exit period happens when you reach the exit level during a tax year.

If the PIE uses the exit calculation option to work out its tax, your exit period starts on the first day of the tax year or the day you became an investor, whichever is later. It ends on the day you reach the exit level.

For PIEs that use the quarterly calculation option, your exit period is the quarter when you reach the exit level. You also get an extra 5 working days after the quarter ends.

But if the PIE chooses to pay tax voluntarily, the quarterly calculation rule doesn’t apply.

Remember, a PIE is a type of investment, and these rules help determine when and how your investment period ends for tax purposes.

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Next up: HM 64: Use of investor classes’ losses

or “How investment companies manage tax losses for different investor groups”
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Part H Taxation of certain entities
Portfolio investment entities: Exit levels and periods

HM 63Exit periods

  1. This section applies when an investor in a multi-rate PIE reaches the exit level during a tax year.

  2. For a PIE that calculates its tax liability using the exit calculation option under section HM 42, the investor’s exit period—

  3. begins with the day that is the later of the start of the tax year and the day on which the investor last became an investor; and
    1. ends on the day in the tax year when the exit level is reached.

      1. For a PIE that calculates its tax liability using the quarterly calculation option under section HM 43, the investor’s exit period is the quarter in which the exit level is reached plus a grace period of 5 working days after the end of the quarter.

      2. Subsection (3) does not apply if the PIE voluntarily pays tax under section HM 45.

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      Notes
      • Section HM 63: 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).