5.—(1) Regulation 7 shall be amended as follows.
(2) In paragraph (2) for sub-paragraph (c) there shall be substituted–
“(c)gilt-edged securities which satisfy the condition specified in paragraph (12);
(ca)any securities issued by or on behalf of a government of any EEA State, which satisfy the condition specified in paragraph (12);
(cb)any securities which–
(i)in relation to a security mentioned in sub-paragraph (ca), would be a strip of that security if “strip” had the same meaning as in section 47 of the Finance Act 1942(1), with the omission of the words “issued under the National Loans Act 1968(2)”, and
(ii)satisfy the condition specified in paragraph (12);”.
(3) In paragraph (8) for the words from “securities which” to “paragraph (6)” there shall be substituted–
“either–
securities which would not be qualifying securities, or
securities which would not fall within any of sub-paragraphs (c) to (cb) of paragraph (2),
if paragraph (6), or paragraph (6) as it applies with the modifications in paragraph (12), as the case may be,”.
(4) After paragraph (11) there shall be inserted–
“(12) The condition specified in this paragraph is the condition specified in paragraph (6), omitting sub-paragraph (b) of that paragraph and the word “or” after sub-paragraph (a).”
1942 c. 21; the relevant amendment to section 47 was made by section 202(2) of the Finance Act 1996 (c. 8).