Finance Act 1986

10 (1) Paragraph 8 shall be amended as follows.

(2) In sub-paragraph (1), the words "Subject to paragraph 7 above" shall be inserted at the beginning.

(3) For sub-paragraph (2) there shall be substituted the following sub-paragraph—

“(2) Subject to sub-paragraph (3) below, section 58(2) to (4) and (6) to (9) of Chapter II shall apply but—

(a) with the addition, at the end of subsection (2)(e), of the words 'which has not been repaid in full before the issue of the shares in respect of which relief is claimed';

(b) with the substitution, in subsection (3), of a reference to paragraph 5(5) above for the reference to section 55(5); and

(c) with the addition, at the end of subsection (4)(c), of the words 'reduced by the amount of any repayment made before the issue of the shares in respect of which relief is claimed'.”

(4) The following sub-paragraph shall be added at the end—

“(4) Where relief to which an individual is entitled in respect of eligible shares is reduced by virtue of this paragraph, effect shall be given to the reduction by apportioning it, as between the eligible shares held by him, in such a way as appears to the inspector, or on an appeal to the Commissioners concerned, to be just and reasonable.”

(5) The amendment made by sub-paragraph (2) above, which is enacted for the avoidance of doubt, shall be deemed to have been incorporated in Schedule 5 to the Finance Act 1983 as originally enacted.