(1) The Principal Act is amended in section 449(2) -
(a) in paragraph (a) by inserting "reduced by the relevant foreign tax" after "the amount so receivable", and
(b) in paragraph (b), by inserting "increased by the amount of the relevant foreign tax," after "for the relevant accounting period".
(2) Schedule 24 to the Principal Act is amended -
(a) in paragraph (9D)(1)(a) by substituting the following for the definition of relevant interest:
"'relevant interest' means interest receivable by a company -
(a) which falls to be taken into account in computing the trading income of a trade carried on by the company, and
(b) from which relevant foreign tax is deducted.",
and
(b) in paragraph (9D)(1)(b) -
(i) in subclause (i) by inserting "reduced by the relevant foreign tax" after "the amount of the relevant interest", and
(ii) in subclause (ii) by inserting "increased by the amount of the relevant foreign tax" after "for the accounting period".
(3) This section applies as respects accountin
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