Finance Act 1998

2 (1) Section 747A of the Taxes Act 1988 (special rule for computing chargeable profits) shall be amended as follows.

(2) In subsection (6), for “a direction has been given under section 747” there shall be substituted “an apportionment under section 747(3) has fallen to be made”.

(3) In subsection (8), for paragraphs (a) and (b) there shall be substituted the following paragraphs—

“(a) an apportionment under section 747(3) has fallen to be made, or

(b) it can reasonably be assumed that such an apportionment would have fallen to be made, but for the fact that the company pursued, within the meaning of Part I of Schedule 25, an acceptable distribution policy,”.

(4) In subsection (9) (which defines a company’s commencement day by reference to an appointed day) in paragraph (b), after “the appointed day” there shall be inserted “(which, for ease of reference, is 23rd March 1995)”.