The Principal Act is amended -

(a) in Chapter 3 (inserted by the Finance Act, 1999) of Part 17 -

(i) in section 519A by the insertion after subsection (3) of the following:

"(3A)

(a) Where, in exercising a right in accordance with the provisions of the scheme at a time when it is approved, the individual acquires scheme shares from a relevant body, neither a chargeable gain nor an allowable loss shall accrue to the relevant body on the disposal of the scheme shares, and the individual shall, notwithstanding section 547(1) (a), be deemed for the purposes of the Capital Gains Tax Acts to have acquired the scheme shares for a consideration equal to the amount paid for their acquisition.

(b) In this subsection and in section 519B -

'relevant body' means a trust or a company which exists for the purpose of acquiring and holding scheme shares;

'schemes shares' has the meaning assigned to it by paragraph 10 of Schedule 12A.".

and

(ii) in section 519B -

(I) in subsection (1), by the substitution for "This section shall apply" of "Subject to subsection (2A) this section shall apply", and

(II) by the insertion after subsection (2) of the following: