(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.