(1) Section 81A of the Principal Act is amended -

(a) in subsection (1)(a) by substituting the following for the definition of "qualifying expenses":

 "' qualifying expenses ', in relation to a scheme manager and an employee benefit scheme, does not include expenses that, if incurred by the employer, would not be allowed as a deduction in calculating the profits or gains of the employer to be charged to tax under Case I or II of Schedule D but, subject to the foregoing, includes any expenses of a scheme manager (apart from the provision of benefits to employees of the employer) incurred in the operation of the employee benefit scheme;

' scheme manager ' means a person who administers an employee benefit scheme or any person to whom an employer pays money or transfers an asset and such person is entitled or required, under the provisions of an employee benefit scheme to retain or use the money or asset for or in connection with the provision of benefits to employees of the employer.",

(b) in subsection (1)(b) by substituting the following for sub-paragraph (i):

 "(i) an employee benefit contribution is made if, as a result of any act or omission -

(I) any assets are held, or may be used, under an employee benefit scheme, or