6

In this section “manufactured payments contract” means a contract under which—

a

the seller is required to pay another person an amount which is representative of a periodical payment of interest on UK securities under an arrangement between them for the transfer of the securities, or

b

the seller is required to pay another person an amount which is representative of an overseas dividend on overseas securities under an arrangement between them for the transfer of the securities.

7

In this section—

a

“overseas securities” means shares, stock or other securities issued by—

i

a government, local authority or other public authority of a territory outside the United Kingdom, or

ii

another non-UK resident body of persons,

and includes shares in a non-UK resident company,

b

“overseas dividend” means any interest, dividend or other annual payment payable in respect of overseas securities, and

c

“UK securities” means securities of—

i

the government of the United Kingdom,

ii

a local authority in the United Kingdom,

iii

another public authority in the United Kingdom, or

iv

a UK resident company or other UK resident body,

but does not include shares in a UK resident company.