The Principal Act is hereby amended in Part 16 -

(a) subject to section 35, as respects eligible shares issued on or after the 3rd day of December, 1997 -

(i) in section 491 -

(I) by the substitution of the following for subsections (2) and (3):

"(2)

(a) Subject to this section, where a company raises any amount through the issue of eligible shares on or after the 3rd day of December, 1997, (in this section referred to as 'the relevant issue'), relief shall not be given in respect of the excess of the amount so raised over the amount determined by the formula -

A − B

where -

A is -

(i) in the case of a company which, or whose qualifying subsidiary, raises the amount by virtue of section 496(2)(a)(iv)(II), £100,000,

(ii) in the case of a relevant investment, £500,000,

(iii) in the case where the money raised was used, is being used or is intended to be used solely for qualifying trading operations referred to in section 496(2) (a) (ix) carried on or to be carried on by the company or its qualifying subsidiary, £1,000,000, or

(iv) in any other case, £250,000, and

B is the lesser of -