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(a) in section 63 by substituting the following for subsections (3) and (4):

(5) For the avoidance of doubt it is hereby declared that, if any sums forming part of the offshore fund’s income for any period have been received by the fund without any deduction of or charge to tax by virtue of section 43, 49, 50 or 63, the effect of the assumption in subparagraph (3)(a) is that those sums are to be taken into account in determining the total profits referred to in subparagraph (2).

(5) Sections 62 and 63 and, in so far as it relates to section 62, Schedule 2 shall apply in relation to interest on quoted Eurobonds as they would apply in relation to dividends to which this Chapter applies—

(b) if in section 63 the following were substituted for subsection (1)(a):

(7) The declaration referred to in subsection (2)(b)(ii) or in subsection (1)(a) of section 63 (as construed by reference to subsection (5)(b)) shall be a declaration in writing to a relevant person which—

(b) by virtue of section 35 or 63,

(ii) in the case of an insurance business, also in computing the profits or loss from pension business and general annuity business under section 715, section 76 shall not prevent the inclusion of interest, dividends and other payments to which section 35 or 63 extends notwithstanding the exemption from tax conferred by those sections respectively.

(5) In the case of an overseas life assurance company (within the meaning of section 706), in computing for the purposes of section 726 the income from the investments of the life assurance fund of the company, any interest, dividends and other payments to which section 35 or 63 extends shall be included notwithstanding the exemption from tax conferred by those sections respectively.