(1) Part 8 of the Principal Act is amended -

(a) in section 243(8), by substituting "subsections (2A), (2B)" for "subsections (2A)",

(b) in section 247(1)(a) by inserting the following definition after the definition of "control":

"‘intermediate holding company’ means a company whose business consists wholly or mainly of the holding of stocks, shares or securities and is, in relation to an investee company referred to in subsection (2) (a) (iv), a company through which the investee company holds stocks, shares or securities in a company referred to in subsection (2)(a)(i);",

(c) in section 247(2) -

(i) by substituting the following for paragraph (a):

"(a) in acquiring any part of the ordinary share capital of -

(i) a company which exists wholly or mainly for the purpose of carrying on a trade or trades,

(ii) a company whose income consists wholly or mainly of profits or gains chargeable under Case V of Schedule D,

(iii) a company whose business consists wholly or mainly of the holding of stocks, shares or securities directly in a company referred to in subparagraph (i),