451Special rule for persons affected by section 733 of ICTAU.K.
(1)This section applies if—
(a)interest payable to a person in respect of securities (“the affected income”) is attributable to a tax year,
(b)because of section 733(1) of ICTA (dividend buying etc: persons entitled to exemptions), some part of the affected income is not exempt from income tax, and
(c)the person makes one or more relievable payments in the tax year which are qualifying annual payments.
(2)Relief under this Chapter for those payments is given only for—
(a)the sum of the gross amounts of the payments, or
(b)if less, the amount of the person's non-affected income.
(3)The person's non-affected income is—
(a)the person's modified net income for the tax year (see section 1025), less
(b)the affected income.
(4)Apply this section before working out the result of section 448(4) or 449(5).
(5)In this section—
“interest” and “securities” are to be read in accordance with section 731(9) of ICTA,
“relievable payment” means a payment to which section 448 or 449 applies, and
“qualifying annual payment” has the same meaning as in Chapter 6 of Part 15 (see section 899).