8(1)In subsection (2) of section 261A of that Act (additional personal allowance for a year in which spouses separate), for the words from “that he is entitled to deduct” onwards there shall be substituted “by reference to which the income tax reduction to which he is entitled under subsection (1) above is calculated shall be treated as reduced by the amount by reference to which the income tax reduction in which that relief consists is, or but for section 256(2)(b) would be, calculated (or to nil where the latter amount is equal to or exceeds the amount which is to be treated as reduced).”
(2)In subsection (4) of that section, for “deduction” there shall be substituted “income tax reduction”.
(3)In subsection (5) of that section—
(a)in paragraph (a), for “relief to which those persons are entitled shall not exceed” there shall be substituted “income tax reductions to which those persons are entitled shall not exceed an amount equal to an income tax reduction calculated (in accordance with section 256(2)(a)) by reference to”; and
(b)in paragraph (c), for the words from “the deduction” to “equal” there shall be substituted “the income tax reduction to which each of them is entitled under section 259 or this section shall be calculated by reference”.