(1) In this section—

"EEA Agreement" means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

"EEA state" means a state which is a contracting party to the EEA Agreement;

"relevant State" means—

(i) a Member State of the European Union, or

(ii) not being such a Member State, an EEA state which is a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made.

(2) The accumulated interest payable in respect of any savings certificate issued by the Minister for Finance, or savings certificates or other similar securities issued by the Government of a relevant State pursuant to rules and conditions which correspond to the rules and conditions contained in regulations issued by the Minister for Finance, under which the purchaser, by virtue of an immediate payment of a specified sum, becomes entitled after a specified period to receive a larger sum consisting of the specified sum originally paid and accumulated interest on that specified sum, shall not be liable to tax so long as the amount of such certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which that person is for the time being authorised to hold under regulations made by the Minister for Finance.