Part 26 of the Principal Act is amended -

(a) in section 710(1) -

(i) in paragraph (b) by substituting ";" for ".", and

(ii) by inserting the following after paragraph (b):

"(c) for the purposes of Schedule 24, any foreign tax arising in respect of the profits excluded in making the computation under paragraph (a) shall be treated as solely attributable to those profits so excluded and that foreign tax -

(i) shall not be allowed as a credit or deduction against corporation tax arising on any other profits of the assurance company,

(ii) shall not be a foreign tax by which income is reduced in accordance with paragraph 7(3)(c) of that Schedule, and

(iii) shall not otherwise be deducted from any other profits of the assurance company.",

(b) in section 730A(5) -

(i) in paragraph (a) by deleting "and",

(ii) in paragraph (b) by substituting "annuitants, and" for "annuitants.", and

(iii) by inserting the following after paragraph (b):