'.—(1) In section 737 of the Taxes Act 1988 (manufactured dividends and interest)—
(1B) Subject to subsection (5AA) below, subsection (1) above shall not apply where the interest in question is interest on gilt-edged securities.";
(5AA) Regulations made by the Treasury may make provision in relation to any such case where the securities in question are gilt-edged securities as may be specified in the regulations—
'gilt-edged securities' has the same meaning as in section 51A;".
(2) In Schedule 23A to that Act, at the beginning of sub-paragraphs (2) and (3) of paragraph 3, there shall be inserted, in each case, "Subject to paragraph 3A below,"; and after that paragraph there shall be inserted the following paragraph—
3A.—(1) This paragraph applies, except in so far as dividend manufacturing regulations otherwise provide, in any case where paragraph 3 above applies and the United Kingdom securities in question are gilt-edged securities.