Multi-rate and listed portfolio investment entities (PIEs) can be further defined as land, retail, or wholesale PIEs. Each of these PIE types have different requirements and advantages.
Land PIE
A PIE is classed as a land PIE if it has more than 50% of its value in:
- land
- resident land investment companies (that are not PIEs)
- a holding of more than 20% in non-resident land investment companies.
Land PIEs must follow these rules.
- Losses from the land class can only be offset against income from that same land class.
- Unused class land loss can only be carried forward to offset taxable income from the same class in later periods.
- Land losses cannot be passed on to investors.
Filing options
Land PIEs can choose any of the available filing options, including as a listed PIE.
Multi-rate portfolio investment entity
Listed portfolio investment entity
Retail and wholesale PIEs
Some investment companies hold several PIEs, giving several options for general customers to invest in. Retail PIEs invest in the company’s wholesale PIE, which makes the actual investment.
The retail PIE will be a zero-rated investor in the wholesale PIE. It can then choose to ‘look through’ the wholesale PIE to identify income and spending in relation to its investor interests.
Most multi-rate PIEs are retail PIEs.