52(1)Schedule 23A to that Act (manufactured payments) shall be amended as follows.U.K.
[F1(2)In paragraph 3 (manufactured interest on UK securities), after sub-paragraph (4) there shall be inserted the following sub-paragraph—
“(5)Without prejudice to section 97 of the Finance Act 1996 (manufactured interest), the references in this paragraph to all the purposes of the Tax Acts do not include the purposes of Chapter II of Part IV of that Act (loan relationships).”]
[F1(3)In paragraph 3A(3) (gilt-edged securities)—
(a)for “Sub-paragraph (4)” there shall be substituted “ Sub-paragraphs (4) and (5) ”; and
(b)for “it applies” there shall be substituted “ they apply ”.]
(4)In paragraph 4 (manufactured interest on overseas dividends), after sub-paragraph (8) there shall be inserted the following sub-paragraph—
“(9)Without prejudice to section 97 of the Finance Act 1996 (manufactured interest), the references in this paragraph to all the purposes of the Tax Acts do not include the purposes of Chapter II of Part IV of that Act (loan relationships).”
[F1(5)In paragraph 5 (dividends and interest passing through the market), in sub-paragraphs (2)(b) and (4)(b), at the end there shall be inserted, in each case, “and shall also be treated, in the case of interest the recipient of which is a company, as if for the purposes of Chapter II of Part IV of the Finance Act 1996 it were interest under a loan relationship to which the company is a party”.]
[F1(6)In paragraph 6 (unapproved manufactured payments), sub-paragraphs (3), (4), (6) and (7) shall cease to have effect.]
(7)In paragraph 7 (irregular manufactured payments), after sub-paragraph (1) there shall be inserted the following sub-paragraph—
“(1A)Sub-paragraph (1) above does not apply in the case of the amount of any manufactured interest or manufactured overseas dividend which falls in accordance with section 97 of the Finance Act 1996 to be treated for the purposes of Chapter II of Part IV of that Act as interest under a loan relationship.”
Textual Amendments
F1Sch. 14 para. 52(2)(3)(5)(6) repealed (19.3.1997 with effect as mentioned in Sch. 18 Pt. VI(10), Note 1 of the amending Act) by 1997 c. 16, ss. 76, 113, Sch. 10 Pt. VI para. 7(1), Sch. 18 Pt. VI(10)