4(1)Section 530 (condition as to distribution of profits) is amended as follows.U.K.
(2)In subsection (1), omit paragraph (b) (but not the word “and” at the end of it).
(3)In subsection (4), omit paragraph (a) (including the word “and” at the end of it).
(4)After subsection (6) insert—
“(6A)In this section, references (however expressed) to a distribution are to either or both of the following—
(a)a dividend in cash, and
(b)share capital issued in lieu of a cash dividend.
(6B)Section 1051(2) to (4) (meaning of “share capital issued in lieu of a cash dividend”) applies for the purposes of subsection (6A) as it applies for the purposes of section 1049(1)(a).
(6C)Subsection (6D) applies if—
(a)(apart from that subsection) there would be a a failure to meet the condition in this section in relation to an accounting period, and
(b)that failure would arise solely by reason of the operation, by virtue of section 599A(2), of section 412(2) of ITTOIA 2005 (substitution of market value) in relation to any distributions within subsection (6A)(b).
(6D)Subsection (1) or (4) (as the case may be) is to have effect in relation to that accounting period as if for the words “on or before” there were substituted “before the end of the period of three months beginning with”.”