Regulation 8

the acquiring company or the acquiring subsidiary, as the case may be, has made qualifying acquisitions or elected qualifying acquisitions of ordinary shares in a target company in a relevant acquisition period;

the acquiring company or the acquiring subsidiary, as the case may be, divests any of those shares in a basis period of the acquiring company that is after the relevant divestment period relating to those acquisitions; and

the total number of ordinary shares in the target company divested in the period —

beginning on the day immediately following the end of the relevant divestment period; and

ending on the last day of the basis period of the acquiring company referred to in sub‑paragraph (b),exceeds the total number of ordinary shares in the target company acquired by the acquiring company or acquiring subsidiary, as the case may be, in that same period,then, the amount of allowable deduction for the acquisitions referred to in sub‑paragraph (a) under section 37L(7) of the Act shall be pro‑rated in accordance with the formula specified in paragraph (2) for the year of assessment relating to the basis period of the acquiring company referred to in sub‑paragraph (b), and subsequent years of assessment.

section 37L(8) of the Act (read with section 37L(11), (11B), (11C) and (12) of the Act);

section 37L(8A) of the Act (read with section 37L(11A), (11AB), (11B), (11C) and (12) of the Act); or

section 37L(9), (9A), (10) or (10A) of the Act (read with section 37L(11), (11A), (11AB), (11B), (11C) and (12) of the Act),for the qualifying acquisitions or elected qualifying acquisitions, as the case may be;M is the total number of ordinary shares in the target company divested in the period referred to in paragraph (1)(c); andN is the total number of ordinary shares in the target company acquired in the period referred to in paragraph (1)(c).