9(1)Amend section 799 of the Taxes Act 1988 as follows.U.K.
(2)After subsection (4) add—
“(5)For the purposes of paragraphs (a) and (c) of subsection (3) above, “profits”, in the case of any period, means the profits available for distribution.
(6)In subsections (4) and (5) above, “profits available for distribution” means, in the case of any company, the profits available for distribution as shown in accounts relating to the company—
(a)drawn up in accordance with the law of the company’s home State, and
(b)making no provision for reserves, bad debts or contingencies other than such as is required to be made under that law.
(7)In this section, “home State”, in the case of any company, means the country or territory under whose law the company is incorporated or formed.”
(3)This paragraph has effect in relation to any claim for credit, under any arrangements, in respect of underlying tax in relation to a dividend paid on or after 21st March 2000 by a company resident outside the United Kingdom to a company resident in the United Kingdom.