F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In section 421(1) of that Act (taxation of borrower where loan under section 419 released)—

(a)in paragraph (a), after “tax” there shall be inserted “ at the lower rate ”;

(b)in paragraph (b), for “basic rate” there shall be substituted “ lower rate ”; and

(c)in paragraph (c), for the words from “which is not” to “that paragraph” there shall be substituted “ to which (without prejudice to paragraph (b) above) section 207A shall be taken to apply as it applies to income chargeable under Schedule F, but, notwithstanding the preceding provisions of this subsection ”.

(5)This section shall apply in relation to the year 1993-94 and subsequent years of assessment.