Part II of Schedule 25 to the Taxes Act 1988 (exempt activities) shall be amended as follows.
In paragraph 9 (activities which constitute investment business) for sub-paragraph (1A) (definition of "intellectual property") there shall be substituted—
In paragraph 11(1) (activities which constitute wholesale, distributive or financial business) for paragraph (c) (banking or any similar business involving the receipt of deposits, loans or both and the making of loans or investments) there shall be substituted—
In consequence of subsection (3) above—
in paragraph 9(3), for "banking or any similar business" there shall be substituted ;" business "
in paragraph 11(3), for "banking or other business" there shall be substituted ." business "
This section has effect in relation to accounting periods of a controlled foreign company, within the meaning of Chapter IV of Part XVII of the Taxes Act 1988, beginning on or after 17th March 1998.