Regulation 3

For regulation 32(2) of the principal Regulations there shall be substituted the following–

“(2)

In the application of paragraph (1) above to a longer period–

(a)

any treatment of exempt input tax as attributable to taxable supplies in any prescribed accounting period shall be disregarded; and

(b)

no account shall be taken of any amount or amounts which may be deductible or payable under regulation 37D.”.