(1) The Principal Act is amended in section 766 -
(a) in subsection (1)(a) by substituting the following for the definition of "threshold amount":
"'threshold amount', in relation to a relevant period of a group of companies, means the aggregate of the amounts of expenditure on research and development incurred in the period of one year ending on a date in the year 2003, which corresponds with the date on which the relevant period ends by all companies which are members of the group in the threshold period, in relation to the relevant period concerned: but expenditure incurred by a company which is a member of the group for a part of the threshold period shall only be included in the threshold amount if the expenditure is incurred at a time when the company is a member of the group;",
(b) in subsection (2) by substituting "25 per cent" for "20 per cent",
(c) in subsection (4) by deleting "Where" and substituting "Subject to subsections (4A) and (4B), where",
(d) by inserting the follow
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