Amendments to Part III of the principal Order7.

(1)

Article 18 of the principal Order (additions to subsidy)9 shall be amended in accordance with the following provisions of this article.

(2)

Paragraph (1)(b)(iia) and (iv) shall be omitted.

(3)

For paragraph (1)(b)(iii), there shall be substituted—

“except where heads (i) or (ii) above apply, 40 per cent. of the overpayment;”.

(4)

In paragraph (1)(c), the words from “80 per cent.” to “new incentive scheme,” shall be omitted.

(5)

For paragraph (1)(d), there shall be substituted—

“where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made—

(i)

under article 19 (other than a deduction under article 19(1)(ea)); and

(ii)

in respect of a year which begins after 31st March 2001 and which is earlier than the relevant year,

was a claimant error overpayment, the amount, if any, by which 40 per cent. of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment.”.

(6)

In paragraph (4)(a)—

(a)

after “Work and Pensions”, there shall be inserted “or of the Inland Revenue”; and

(b)

after “that Department”, there shall be inserted “or to the Inland Revenue”.

(7)

In paragraph (4A), for “(1)(b)(iia)” there shall be substituted “(1)(d) and in article 19(1)(ea)”.

(8)

In paragraph (5), for “(1)(b)(iia) and (iii) and (c) and (4A)” there shall be substituted “(1)(c) and (4A)”.