(1) In this section -
'chargeable period' and 'basis period' have the same meanings as they have for the purposes of section 817B;
'relevant date', in relation to a chargeable period, means the date on which the basis period for the chargeable period ends;
'relevant liability' means a liability of one person to another person.
(2) Subject to subsection (2A), this section applies where -
(a) interest is payable by a person, directly or indirectly, to a connected person (being interest which, if it were paid, would be chargeable to tax under Schedule D),
(b) the interest would, apart from this section, be allowable in computing trading income of a trade carried on by the person, and
(i) in a case where the connected person is chargeable to tax in respect of the interest, the interest does not fall to be taken into account, or
(ii) in any other case, if the connected person were resident in the State the interest would not fall to be taken into account,
in computing the trading income
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