Regulation 3

at the beginning of paragraph (1) there shall be inserted “Subject to paragraph (1A) and regulation 32 below,”; and

after paragraph (1) there shall be inserted the following—

“(1A)

Notwithstanding any provision of any method approved or directed under this regulation which purports to have the contrary effect, in calculating the proportion of any input tax on goods or services used or to be used by the taxable person in making both taxable and exempt supplies which is to be treated as attributable to taxable supplies the value of any supply within regulation 30(3) above shall be excluded.”.