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5(1)For the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the M1Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider-range and narrower-range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of a successor company during the calendar year in which the transfer date falls (“the first investment year”) or during any year following that year, the successor company shall be deemed to have paid a dividend as there mentioned—E+W+S+N.I.
(a)in every year preceding the first investment year which is included in the relevant five years, and
(b)in the first investment year, if that year is included in the relevant five years and the successor company does not in fact pay such a dividend in that year.
(2)In sub-paragraph (1)—
“the relevant five years” means the five years immediately preceding the year in which the investment in question is made or proposed to be made;
“the transfer date”, in relation to a successor company, means the first date on which any preparatory scheme in accordance with which property, rights or liabilities are transferred to that company comes into force.
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