(1)    This section applies if—

(a)    any property, rights or liabilities are transferred under a transfer scheme to a transferee which at the time of the transfer is a company wholly owned by the Crown,

(b)    at a time after the transfer the first condition (set out in subsection (2)) is satisfied, and

(c)    the second condition (set out in subsection (3)) is satisfied.

(2)    The first condition is that the transferee is a company whose shares or debentures are included in the Official List, within the meaning of Part IV of the Financial Services Act 1986, in pursuance of that Part.

(3)    The second condition is that immediately before its shares or debentures are admitted to the Official List the transferee is wholly owned by the Crown.

(4)    If this section applies, subsection (5) has effect for the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the Trustee Investments Act 1961 (dividends to be paid in each of the five years immediately preceding investment year) in relation to investment in shares or debentures of the transferee in the year of issue or any later year.

(5)    The transferee must be taken to have paid a dividend as mentioned in paragraph 3(b)—

(a)    in every year which precedes the year of issue and which is included in the relevant five years, and

(b)    in the year of issue, if it is included in the relevant five years and the transferee does not in fact pay such a dividend in that year.

(6)    For the purposes of this section—

(a)    the year of issue is the calendar year in which shares in the transferee are first issued in pursuance of section 49;

(b)    the relevant five years are the five years immediately preceding the year in which the investment in question is made or proposed to be made.