1

This section applies if—

a

a person pays a manufactured payment as mentioned in section 614ZC(1),

b

the amount payable is representative of interest on UK securities (“manufactured interest”), and

c

the person —

i

is UK resident, or

ii

pays the manufactured interest in the course of a trade carried on in the United Kingdom through a branch or agency.

6

In subsection (1) “UK securities” means securities of—

a

the government of the United Kingdom,

b

a local authority in the United Kingdom,

c

another public authority in the United Kingdom, or

d

a UK resident company or other UK resident body.

7

But “UK securities” does not include shares in a UK resident company.

8

In this section “securities” includes loan stock or any similar security.