Taxes Consolidation Act 1997 section 739BA

Personal portfolio investment undertaking

Section 739BA defines a "personal portfolio investment undertaking" (PPIU) for the purposes of applying higher tax rates to gains arising from investment undertakings and certain offshore funds where the investor has influence over the selection of the underlying assets.

• A PPIU is an investment undertaking or qualifying offshore fund where the selection of the fund's property was or can be influenced by the investor, a person acting on the investor's behalf, or a person connected with the investor.
• Even where the investor cannot directly select assets, the fund is treated as a PPIU if the investor can exercise an option to influence selection, request a change in terms to permit selection, or appoint an investment adviser to select assets on their behalf.
• A fund is not a PPIU if the opportunity to select the property was available to the public generally (as evidenced in marketing or promotional literature) at the time the property was available for selection, and the fund deals with all investors on a non-discriminatory basis.
• Where 50% or more of the property by value is land (including buildings), no single investor may invest more than 1% of the fund's stated capital requirement (excluding borrowings).