Schedule 24 of the Principal Act is amended -

(a) in paragraph 1(1) -

(i) by inserting the following before the definition of "foreign tax" (inserted by the Finance Act, 1998):

"'EEA Agreement' means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

'EEA State' means a state which is a contracting party to the EEA Agreement;",

and

(ii) by inserting the following after the definition of "foreign tax" (as so inserted):

"'relevant Member State' means -

(a) a Member State of the European Communities, or

(b) not being such a Member State, an EEA State which is a territory with the government of which arrangements having the force of law by virtue of section 826 have been made;",

(b) in paragraph 9A -

(i) in subparagraph (3A) (a) (ii) by substituting "relevant Member State" for "Member State of the European Communities", and

(ii) in subparagraph (3A) (b) by substituting "relevant Member State" for "Member State of the European Communities",