29(1)Section 279F (ring fence profits: related 51% group company) is amended as follows.
(2)In subsection (7)(c) (conditions to be met by a company’s dividend income in order for company to be a passive company), in sub-paragraph (ii) (dividends must be franked investment income) for “franked investment income” substitute “exempt ABGH distributions”.
(3)After subsection (9) insert—
“(10)In subsection (7)(c) “exempt ABGH distribution” means a distribution which—
(a)is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and
(b)is exempt for the purposes of Part 9A of CTA 2009 (company distributions).”