Portfolio Investment Entity (PIE) funds apply special tax rules, which can result in investors paying less tax compared to traditional investments:
Your PIE tax rate (PIR) is based on your taxable income from the past two years (including PIE income) and can be as low as 10.5% or 17.5%.
The maximum tax rate you’ll pay on PIE income is 28%, which is beneficial if your personal income tax rate is higher.
When the correct PIR is applied, tax is final — meaning there is no need to file a separate income tax return for PIE income.
When your Prescribed Investor Rate (PIR) is correctly set, the PIE fund handles the tax for you:
No need to declare PIE income in your personal tax return (if all income is taxed at source and PIR is correct).
This makes PIE funds ideal for investors looking for a simplified tax structure.
If you’re a zero-rated or non-taxable investor (e.g. some charities or trusts), a PIE fund acts as a flow-through vehicle, allowing the benefit of tax-free income. This can make it particularly attractive for trusts and other non-taxable entities.
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Download Pack Request Physical PackDisclaimer: First Mortgage Trust is not a financial or tax adviser. The potential benefits of investing in a PIE will depend on each investor’s personal circumstances. This information is of a general nature and we strongly recommend that you talk to your financial or tax adviser to determine what type of fund is right for you. Tax laws are subject to change.
Complete this questionnaire to see what type of fund might be the most tax effective for your circumstances. Please note, this is just a guide and we recommend you seek professional tax advice.
Disclaimer – This tool is intended to provide general guidance only. This tool does not take into account your particular financial situation, objectives or goals.
There are alternative strategies which may provide better outcomes, we recommend you seek independent advice before making any investment decision. If you have completed this guide and wish to discuss this, we recommend you seek professional tax advice.