Section 163.

1. The Taxes Consolidation Act 1997 is amended in accordance with the following provisions:

(a) in section 409C(3)(b), by inserting "under a passive investment scheme" after "transferee",

(b) in section 434 -

(i) in subsection (1) by deleting the definitions of "distributable income" and "trading income", and

(ii) in subsection (5)(a) by substituting the following for subparagraph (ii):

"(ii) an amount determined by applying to the amount of the income of the company for the accounting period the fraction -

where -

A is the aggregate of the amounts of estate income and investment income taken into account in computing the income of the company for the accounting period, and

B is the amount of the company's income before taking account of any amount specified in paragraphs (d) to (g) of subsection (4),",

(c) in section 440 by deleting subsection (2A),