1(1)After section 840 of the Taxes Act 1988 there shall be inserted the following section—U.K.
(1)In any provision in relation to which it is provided that “bank” has the meaning given by this section “bank” means—
(a)the Bank of England;
(b)an institution authorised under the M1Banking Act 1987;
(c)a relevant European institution; or
(d)a relevant international organisation which is designated as a bank for the purposes of that provision by an order made by the Treasury.
(2)For the purposes of subsection (1) above, an institution is a relevant European institution if—
(a)it is a European authorised institution within the meaning of the M2Banking Co-ordination (Second Council Directive) Regulations 1992; and
(b)the requirements of paragraph 1 of Schedule 2 to those regulations have been complied with in relation to its establishment of a branch.
(3)For the purposes of subsection (1) above, a relevant international organisation is an international organisation of which the United Kingdom is a member.”
(2)In section 828 of the Taxes Act 1988 (regulations and orders), in subsection (4), for “or 791” there shall be substituted “ 791 or 840A(1)(d) ”.