(1)Where—
(a)the value of the estate of a company (“the transferee company”) is increased as the result of a transfer of value made by a close company (“the transferor company”), and
(b)an individual to whom part of the value transferred is apportioned under section 94 above has an interest in the transferee company (or in a company which is a participator of the transferee company or any of its participators, and so on),
subsection (2) below shall apply to the computation, for the purposes of section 94 above, of the amount to be offset, that is to say, the amount by which the value of his estate is more than it would be but for the transfer.
(2)Where this subsection applies—
(a)the increase in the value of the transferee company’s estate shall be taken to be such part of the value transferred as accounts for the increase, and
(b)the increase so computed shall be apportioned among the transferee company’s participators according to their respective rights and interests in the company immediately before the transfer (and, where necessary, further apportioned among their participators, and so on),
and the amount so apportioned to the individual shall be taken to be the amount to be offset.