14(1)Section 490 of the Taxes Act 1988 (companies carrying on a mutual business or not carrying on a business) shall be amended as follows.
(2)In subsection (1) after “(including group income)” there shall be inserted “ or out of foreign income dividends ”.
(3)In subsection (4) after “franked investment income” there shall be inserted “ or foreign income dividends ”.
(4)The following subsection shall be inserted after subsection (4)—
“(5)In this section “foreign income dividends” shall be construed in accordance with Chapter VA of Part VI.”