(1) Section 31 of the Finance Act, 1965, is hereby amended -
(a) by the insertion after subsection (1) of the following subsection:
"(1A) This section shall not apply unless the scheme of reconstruction or amalgamation is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to stamp duty, income tax, corporation tax, capital gains tax or capital acquisitions tax.",
(b) by the insertion after subsection (7) of the following subsection:
"(7A) For the removal of doubt it is hereby declared that references in this section to 'transferee company' are references only to a company with limited liability.".
(2)Section 31 of the Finance Act, 1965, shall apply notwithstanding -
(a)that the transferee company referred to in that section is incorporated in another Member State of the European Union, or
(b)that the particular existing company referred to in that section is i