(1)In subsection (1) of section 1A of the Taxes Act 1988 (rate of income tax applicable to income from savings and distributions), for “and 686," there shall be substituted “ , 686 and 720(5), ”.
(2)In subsection (2) of that section, after paragraph (a) there shall be inserted the following paragraph—
“(aa)any amount chargeable to tax under Case VI of Schedule D by virtue of section 714, 716 or 723;”
(3)Subsections (1) and (2) above apply for the year 1998-99 and subsequent years of assessment.