Part 16 of the Principal Act is amended -

(a) in section 500, by the insertion of the following subsection after subsection (7):

"(8) For the purposes of subsection (2), an individual shall not be connected with a company by reason that an associate of the individual -

(a) has an interest in the share capital of that company, and

(b) is a partner of the individual solely by virtue of their both being partners in a qualifying investment fund within the meaning of section 508IA.",

(b) in section 508A(3)(a)(vi), by the substitution of "subsection (2)(a) or (2A) of section 502, as the case may be" for "section 502(2)(a) ", and

(c) in section 508U -

(i) by the substitution of the following subsection for subsection (1):

"(1) Where a statement of qualification issued by a company is incorrect, any relief claimed by an individual in excess of the relief which would have been claimed had a correct statement of qualification been furnished shall be withdrawn by the making of an assessment on the qualifying company to corporation tax under Case IV of Schedule D for the year of assessment for which the relief was given -