5. In the Schedule, in paragraph 9C—
(a)in sub-paragraph (1)—
(i)at the beginning insert “Subject to sub-paragraphs (3) and (4), ”;
(ii)after paragraph (a)(i) omit “or”;
(iii)after paragraph (a)(ii) insert—
“or
(iii)a British citizen who—
(aa)was born in the British Indian Ocean Territory or, before 8 November 1965, in those islands designated as the British Indian Ocean Territory on that date; or
(bb)is a direct descendant of a person who was born in the British Indian Ocean Territory or, before 8 November 1965, in those islands designated as the British Indian Ocean Territory on that date;”;
(b)after sub-paragraph (2) insert—
“(3) For the purposes of paragraphs (c) and (d) of sub-paragraph (1), a person mentioned in paragraph (a)(iii) of sub-paragraph (1) is treated as being ordinarily resident in the specified British overseas territories in any period before the first day of the first academic year of the course in which they are not ordinarily resident in the United Kingdom or the Islands.
(4) Paragraph (e) of sub-paragraph (1) does not apply to a person mentioned in paragraph (a)(iii) of that sub-paragraph.”