Section 261 of the Principal Act is amended -

(a) by the substitution, in paragraph (c)(i), of "person (other than a company)" for "person (being an individual)",

(b) by the substitution, in paragraph (c)(ii)(I), of "paragraph (d)" for "section 59", and

(c) by the substitution of the following paragraph for paragraph (d):

"(d) where relevant interest is to be taken into account in computing the total income of a person (other than a company) for any year of assessment, then, for the purpose of charging that total income to tax at the rate or rates of tax charged for that year of assessment, the following provisions shall apply -

(i) the relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and shall be charged accordingly, and

(ii) in determining the amount of tax payable on that relevant interest, credit shall be given for the appropriate tax deducted from the relevant interest and the amount of the credit shall be the amount of such appropriate tax.".