Where on the disposal by trustees of a deep discount security an amount is treated as income chargeable to tax by virtue of paragraph 4(1) above, the rate at which it is chargeable shall be F1the rate applicable to trusts for the year of assessment in which the disposal is made.

Where the trustees are trustees of a scheme to which section 469 applies, sub-paragraph (1) above shall not apply if or to the extent that the amount is treated as income in the accounts of the scheme.

Sub-paragraph (1) above shall not apply unless the disposal is made on or after 14th March 1989.