In subsection (2) (tax which is to be treated as if it were to be disregarded for certain purposes) in paragraph (b), after “is attributable, on a just and reasonable apportionment,” insert “(i)” and at the end insert“; or

(ii)

to so much of a relevant qualifying payment as, on such an apportionment, is attributable to a time when the company is not a party to the interest rate or currency contract concerned”.

In subsection (7), insert the following definition at the appropriate place—

““relevant qualifying payment” means a qualifying payment, for the purposes of Chapter II of Part IV of the M1Finance Act 1994, falling within section 153(1)(a) or (b) of that Act;”.