328(1)Amend section 818 (arrangements for payments of interest less tax or of fixed net amount) as follows.
(2)In subsection (2) for the words from “interest”, in the first place where it occurs, to “and” substitute “relevant interest”.
(3)After subsection (2) insert—
“(3)In subsection (2) “relevant interest” means—
(a)interest on which the recipient is chargeable to income tax, which falls within Chapter 2 of Part 4 of ITTOIA 2005 but which is not relevant foreign income, or
(b)interest on which the recipient is chargeable to corporation tax under Case III of Schedule D.”