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HM 70: Maximum amount of formation losses allocated by multi-rate PIEs to investor classes
or “Limit on startup losses that investment funds can assign to different investor groups”
You could also call this:

“How to choose to become a Portfolio Investment Entity (PIE)”

You can choose to become a PIE if you meet certain rules. These rules are found in sections HM 8 to HM 10, HM 17, HM 18, and HM 20. However, you don’t need to meet all these rules if they don’t apply to you. To become a PIE, you need to tell the Commissioner. You do this by following the steps in section 31B of the Tax Administration Act 1994.

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Next up: HM 71B: Choosing to become foreign investment PIE

or “How a multi-rate PIE can choose to become a foreign investment PIE for overseas investors”
Next

Part H Taxation of certain entities
Portfolio investment entities: Elections and consequences

HM 71Choosing to become PIE

  1. An entity that, at the time of election, meets the requirements of the entry rules in sections HM 8 to HM 10, HM 17, HM 18, and HM 20, except to the extent to which the relevant requirement is said not to be applicable to the entity, may choose to become a PIE by notifying the Commissioner under section 31B of the Tax Administration Act 1994.

Compare
  • s HL 11(1), (3)
Notes
  • Section HM 71: 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).