26U.K.In section 877 of ITA 2007 (duty to deduct under section 874: exception relating to UK public revenue dividends)—
(a)for “in respect of” substitute “ that is ”, and
(b)after “dividend” insert “ (as defined by section 891) ”.
27(1)Chapter 5 of Part 15 of ITA 2007 (deduction from payments of UK public revenue dividends) is amended as follows.U.K.
(2)In section 893(2) (securities which are gross-paying government securities)—
(a)before the “or” at the end of paragraph (a) insert—
“(aa)securities, so far as they are not gilt-edged securities, issued or treated as issued under—
(i)the National Loans Act 1939, or
(ii)the National Loans Act 1968,”, and
(b)in paragraph (b), for “894(1) or (3)” substitute “ 894(3) ”.
(3)In section 894 (power to direct that securities are gross-paying government securities)—
(a)omit subsections (1) and (2) (power in relation to securities within the new section 893(2)(aa)), and
(b)in subsection (5) omit “(1) or”.