8.—(1) Paragraph 34 (other definitions etc) is amended as follows.
(2) At the end of sub-paragraph (2) insert “; but this is subject to sub-paragraph (2A)”.
(3) After that sub-paragraph insert—
“(2A) For the purposes of this Part of this Schedule, a company is not connected with another company only because both are under the control of—
(a)the Crown,
(b)a Minister of the Crown,
(c)a government department, or
(d)a Northern Ireland department.
(2B) In sub-paragraph (2A) “company” and “control” have the same meaning as in section 839 of the Taxes Act(1).”.
Section 96(1) of the Value Added Tax Act 1994 (c. 23) defines “the Taxes Act” as the Income and Corporation Taxes Act 1988 (c. 1).