Section 784A of the Principal Act is amended, in subsection (1B), by the substitution of the following paragraph for paragraph (a):

"(a) in the case of a loan made -

(i) to the individual beneficially entitled to the assets in an approved retirement fund or to any person connected with that individual, or

(ii) to a close company, where the individual beneficially entitled to the assets in an approved retirement fund, or any person connected with that individual, is a participator in that close company,

the amount to be regarded as a distribution for the purposes of this section is an amount equal to the value of the assets of the approved retirement fund used to make such a loan or used as security for such a loan,".