3A(1)Where any manufactured interest is representative of interest on securities to which this paragraph applies—
(a)paragraph 3(2) above shall not require any deduction of tax to be made on the payment of that manufactured interest; and
(b)without prejudice to any other liability of his to income tax in respect of the manufactured interest, the recipient shall not by virtue of paragraph 3(5) above be liable to account for any income tax in respect of that manufactured interest.
(2)This paragraph applies to—
(a)gilt-edged securities (within the meaning of section 51A); and
(b)securities not falling within paragraph (a) above on which the interest is payable without deduction of tax.