(1) Section 35A (inserted by section 11(d) of the Finance Act, 1993) of the Corporation Tax Act, 1976, is hereby amended by the insertion after subsection (1) of the following:
(a) Where in an accounting period a company disposes of any securities and in the immediately following accounting period interest becoming payable in respect of the securities is receivable by the company, the gain or loss accruing on the disposal shall be computed as if the price paid by the company for the securities was reduced by the appropriate amount in respect of the interest:
Provided that where for an accounting period the provisions of this paragraph apply so as to reduce the price paid for securities, the amount by which the price paid for the securities is reduced shall be treated as a loss arising, in the immediately following accounting period, from the disposal of the securities.
(b) In this subsection -
‘the appropriate amount in respect of the interest’ means the appropriate a