The Principal Act is amended -

(a) in section 153 by inserting the following after subsection (4):

"(4A) Subsection (4) shall not apply to a property income dividend (within the meaning of section 705A).",

(b) in section 172D by inserting the following after subsection (3A):

"(3B) Subsections (2) and (3) shall not apply to a property income dividend (within the meaning of section 705A).",

and

(c) by inserting the following Part after Part 25:

"Part 25A Real Estate Investment Trusts

Interpretation and application.

705A. In this Part -

'aggregate income', in relation to a company or group, means the aggregate profits of the company or group, as the case may be, as -

(a) reduced by the aggregate net gains of the company or group, as the case may be, where aggregate net gains arise, or

(b) increased by the aggregate net losses of the company or group, as the case may be, where aggregate net losses arise;