3.  For regulation 99(1)(a) substitute—

“(a) “exempt input tax” means input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him in so far as they are used by him or are to be used by him, or a successor of his, in making exempt supplies, or supplies outside the United Kingdom which would be exempt if made in the United Kingdom, other than any input tax which is allowable under regulation 103 or 103A;

and “successor” in this paragraph has the same meaning as in regulation 107D;”.