Section 472 of the Taxes Act (application of bond-washing provisions to dealers in securities) shall have effect, and be deemed always to have had effect, with the addition, at the end of the section, of the following subsection: —
“(5)Subsection (1) of this section shall not apply if the securities are Eurobonds bought by the first buyer in the ordinary course of his trade as a dealer in Eurobonds ; and in this subsection " Eurobond " means a security—
(a)which is neither preference stock nor preference share capital; and
(b)which is issued in bearer form; and
(c)which carries a right to interest either at a fixed rate or at a rate bearing a fixed relationship to a standard published base rate ; and
(d)which does not carry a right to any other form of benefit, whether in the nature of interest, participation in profits or otherwise ; and
(e)the interest on which is payable without any deduction in respect of income tax or of any tax of a similar character imposed by the laws of a territory outside the United Kingdom ;
but, notwithstanding anything in paragraph (d) above, a security is not prevented from being a Eurobond by reason only that it carries a right to convert into a security of another description or to subscribe for further securities (whether of the same description or not).”