5(1)In section 1217GB (European expenditure condition)—
(a)in the heading, for “European” substitute “UK”;
(b)in subsection (1)—
(i)for “European” (in both places it occurs) substitute “UK”;
(ii)for “25%” substitute “10%”;
(c)for subsection (2) substitute—
“(2)In this Part “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom.”;
(d)in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;
(e)in subsection (5), for “European” substitute “UK”.
(2)In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—
(a)section 1217G(1)(b) (conditions for production to qualify for relief);
(b)section 1217N(2) (provisional satisfaction of European expenditure condition);
(c)section 1217NA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).
(3)In section 1217OB (defined terms)—
(a)omit the definitions of “European expenditure” and “European expenditure condition”;
(b)at the end insert—
““UK expenditure” has the meaning given by section 1217GB;
“UK expenditure condition” has the meaning given by section 1217GB.”
(4)In Schedule 4 (index of defined expressions)—
(a)omit the entries for “European expenditure (in Part 15C)” and “European expenditure condition (in Part 15C)”;
(b)at the appropriate places insert—
| “UK expenditure (in Part 15C) | section 1217GB(2)”; |
| “UK expenditure condition (in Part 15C) | section 1217GB(1)”. |
(5)For transitional provision in relation to this paragraph, see paragraph 11.