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HM 63: Exit periods
or “When an investor's stake in a multi-rate PIE investment ends”
You could also call this:

“How investment companies manage tax losses for different investor groups”

This law is about how certain types of investment companies, called PIEs, handle losses for different groups of investors. When a group of investors in a PIE has a tax loss during a specific time period, the law says you can’t carry this loss forward to future periods. Instead, if the loss is for regular investors (not special types called zero-rated investors), the PIE gets a tax credit to help balance things out. The amount of this credit is worked out using a special calculation. If you’re a foreign investor in a special type of PIE for overseas investors, any losses related to you are ignored completely. This law doesn’t apply to a specific kind of loss called a land loss.

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Next up: HM 65: Use of land losses of investor classes

or “How investment groups can use losses from land investments to reduce future taxable income”
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Part H Taxation of certain entities
Portfolio investment entities: Losses of certain multi-rate PIEs

HM 64Use of investor classes’ losses

  1. This section applies when an investor class of a PIE that calculates and pays tax using the exit calculation or quarterly calculation options under section HM 42 and HM 43 has a tax loss under section HM 35(7) for a calculation period. But this section does not apply to a land loss as defined in section HM 65(3).

  2. The amount is not included in a loss balance carried forward under Part I (Losses) to a later calculation period.

  3. To the extent to which the amount relates to an investor other than a zero-rated investor or an investor treated under section HM 61 as zero-rated, the PIE has a tax credit under section LS 1 (Tax credits for multi-rate PIEs). The amount of the credit is calculated under section HM 47(5).

  4. For a notified foreign investor in a foreign investment PIE, the amount is disregarded.

Compare
  • s HL 32(1)
Notes
  • Section HM 64: 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 64(3): amended, on , by section 109(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
  • Section HM 64(4) heading: added, on , by section 84(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section HM 64(4): replaced, on , by section 109(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
  • Section HM 64 list of defined terms foreign investment PIE: inserted, on , by section 84(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section HM 64 list of defined terms notified foreign investor: inserted, on , by section 84(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).