(1) Section 400 of the Principal Act is amended, in subsection (7A), by the substitution of "section 835AAD(8)" for "section 835AAD(8) or (10)".

(2) Part 35D of the Principal Act is amended -

(a) in section 835AY, in subsection (1) -

(i) by the substitution of the following definition for the definition of 'consolidating entity':

"'consolidating entity' means an entity, other than a non-consolidating entity, which is included in the ultimate consolidated financial statements or would be included in the ultimate consolidated financial statements but for being excluded by the ultimate parent on materiality grounds under generally accepted accounting practice or an alternative body of accounting standards;",

(ii) in the definition of "interest equivalent" -

(I) by the insertion of the following paragraph after paragraph (c):

"(ca) any amounts referred to in paragraph (a) or (b) claimed by a claimant company under section 420A(3) or 420B(2) that are treated under section 247(4G) for the purposes of Chapter 5 of Part 12 as relevant trading charges on income (within the meaning of section 243A),",