Paragraph 27

in subsection (1), in step 2, after “savings income” insert “, property income”,

in that subsection, in step 5, in paragraph (a), for “the basic rate” substitute “the savings basic rate”,

in that subsection, after that step insert—

“Step 5A

If there are remaining expenses and there is property income—

1. (a)

   gross up by reference to the property basic rate so much of the remaining expenses as is necessary to give a result equal to the amount of that income, or

2. (b)

   if there are not enough remaining expenses to give that result, gross them all up by reference to that rate.

For the purposes of this step “the remaining expenses” are the allowable expenses so far as they have not been grossed up at Step 3, 4 or 5.”, and

in that subsection, in step 6, in the final sentence, for “or 5” substitute “, 5 or 5A”.