Paragraph 3

For paragraph 1(1A) (supplies benefit from reduced rate only if funded by grants) substitute—

“(1A)

A supply to which any of paragraphs (b) to (k) of sub-paragraph (1) above applies is a supply falling within this paragraph only to the extent that the consideration for it—

(a)

is, or is to be, funded by a grant made under a relevant scheme; or

(b)

in the case of a supply to which paragraph (i) of that sub-paragraph applies—

(i)

is, or is to be, funded by such a grant, or

(ii)

is a payment becoming due only by reason of the termination (whether by the passage of time or otherwise) of the leasing of the goods in question.”