4. After Note (2) there shall be inserted–
“(2A) Subject to Notes (2C) and (3), in this Group “eligible body” means a non-profit making body which–
(a)is precluded from distributing any profit it makes, or is allowed to distribute any such profit by means only of distributions to a non-profit making body;
(b)applies in accordance with Note (2B) any profits it makes from supplies of a description within Item 2 or 3; and
(c)is not subject to commercial influence.
(2B) For the purposes of Note (2A)(b) the application of profits made by any body from supplies of a description within Item 2 or 3 is in accordance with this Note only if those profits are applied for one or more of the following purposes, namely–
(a)the continuance or improvement of any facilities made available in or in connection with the making of the supplies of those descriptions made by that body;
(b)the purposes of a non-profit making body.
(2C) In determining whether the requirements of Note (2A) for being an eligible body are satisfied in the case of any body, there shall be disregarded any distribution of amounts representing unapplied or undistributed profits that falls to be made to the body’s members on its winding-up or dissolution.”.