(1) In this section -

"specified deposit" means a relevant deposit made on or after the 28th day of March, 1996, in respect of which specified interest is payable other than such a deposit -

(a) which is held in a special savings account, or

(b) in respect of which -

(i) the interest payable is to any extent linked to or determined by changes in a stock exchange index or any other financial index,

(ii) arrangements were, or were being put, in place by the relevant deposit taker before the 28th day of March, 1996, to accept such a deposit, and

(iii) the deposit is made on or before the 7th day of June, 1996;

"specified interest" means interest in respect of a specified deposit, other than so much of the amount of that interest as -

(a) is payable annually or at more frequent intervals, or

(b) cannot be determined until the date of payment of such interest, notwithstanding that the terms under which the deposit was made are complied with fully.