Proportionate reduction of tax by reference to assets held
5(1)The amount of tax chargeable after any reduction under paragraph 4 shall be further reduced if in the relevant two-week period the trust property is invested in both exempt and non-exempt investments.
(2)The reduction is made by applying the following fraction to that amount—
Where:
N is the average market value of the non-exempt investments over the relevant two-week period, and
E is the average market value of the exempt investments over that period.
(3)In this paragraph “exempt investment” has the same meaning as in section 99(5A)(b) of the [1986 c. 41.] Finance Act 1986; and “non-exempt investment” means any investment that is not an exempt investment.