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(b) in section 752(2)(a) by substituting the following for the definition of “shares of a class to which this section applies”:

Sections 749 and 752

(1) Subject to paragraph 2, a dividend shall be regarded for the purposes of section 752 and of this Schedule as paid wholly out of profits accumulated before a given date (in this Schedule referred to as “the relevant date”) if—

(2) Subject to paragraph 2, where out of such profits of the company as arose in the period beginning on the relevant date and ending on the date on which the dividend is payable, some part is, having regard to paragraph 3, available for payment of the dividend but the total amount distributed in payment of the net dividend on all the shares of the class in question exceeds that part of the profits, the dividend shall be regarded for the purposes of section 752 and of this Schedule as paid out of profits accumulated before the relevant date to an extent which is the same as the proportion which the excess bears to that total amount.

(g) if the company is not engaged in carrying on a trade mentioned in section 752(3) and has received in the period—

(ii) after the 5th day of April, 1976, a distribution within the meaning of Chapter 2 of Part 6 which if the company had been engaged in such a trade would have been required by section 752(3) to be taken into account to any extent mentioned in that section, an amount equal to so much of the distribution as would be so required to be taken into account increased by so much of the tax credit in respect of that distribution as bears to the amount of such tax credit the same proportion as the part of the distribution which would be so required to be taken into account bears to the distribution, and

(h) if the company is not engaged in carrying on a trade mentioned in section 752(3), but were it so engaged any reduction under section 749 would, or would but for section 749(3), be made as respects the price paid by the company for securities (within the meaning of that section) bought by it in the period—

(3) Subsection (1) shall not apply if the interest is to any extent required to be taken into account under section 752 as if it were a trading receipt which had not borne tax or would to any extent be so required to be taken into account but for paragraph 2 of Schedule 22.

Where a person or a body of persons carries on a trade, other than such a trade mentioned in section 752(3), and the person’s or the body of persons’ income for any year of assessment or, as the case may be, accounting period includes a dividend the net amount of which would, if the trade were such a trade mentioned in section 752(3), be required to any extent to be taken into account as a trading receipt which has not borne tax, then, in ascertaining—

Where a person or a body of persons carries on a trade, other than such a trade mentioned in section 752(3), and the person’s or the body of persons’ income for any year of assessment or, as the case may be, accounting period includes a dividend the net amount of which would, if the trade were such a trade mentioned in section 752(3), be required to any extent to be taken into account as a trading receipt which has not borne tax, then, in ascertaining—