17(1)In Schedule 3 to that Act (machinery provisions), in sub-paragraph (1) of paragraph 6A, for “basic rate” there shall be substituted “ applicable rate ”.
(2)After sub-paragraph (2) of that paragraph there shall be inserted the following sub-paragraph—
“(2A)Payments of tax made on any person’s behalf under this paragraph shall be treated as made for the purpose only of being applied in the discharge of that person’s liability to tax charged (otherwise than by virtue of this paragraph) on the dividends or proceeds to which the payments relate.”
(3)After sub-paragraph (3) of that paragraph there shall be inserted the following sub-paragraph—
“(4)For the purposes of sub-paragraph (1) above the applicable rate shall be—
(a)the lower rate, in the case of a foreign dividend which is neither interest nor any other annual payment which is made otherwise than by way of dividend; and
(b)the basic rate in any other case.”