(1) Where -
(a) the profits or gains or losses of a person (in this section referred to as the 'first-mentioned person'), that are chargeable to tax under Schedule D, are, by virtue of section 835C, computed as if, instead of the actual consideration payable or receivable under the terms of an arrangement, the arm's length amount in relation to that arrangement were payable or receivable as the case may be, and
(b) the other party (in this section referred to as the 'affected person') to the arrangement is within the charge to tax under Schedule D in respect of the profits or gains or losses arising from the relevant activities,
then, subject to subsections (2) and (3), on the making of a claim by the affected person, the profits or gains or losses of the affected person arising from the relevant activities that are chargeable to tax under Schedule D shall be computed as if, instead of the actual consideration receivable or payable by the affected person under the terms of the arrangem
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