(1) Part 8 of the Principal Act is amended -

(a) in section 256(1) by substituting the following for the definition of "appropriate tax":

"'appropriate tax', in relation to a payment of relevant interest, means a sum representing income tax on the amount of the payment at the rate of 41 percent;",

(b) in section 261(c)(i) -

(i) by substituting the following for clause (II):

"(II) where the taxable income of that person includes relevant interest, the part of taxable income equal to that relevant interest shall be chargeable to tax at the rate at which tax was deducted from that relevant interest,",

and

(ii) by deleting clause (III),

(c) in section 261A -

(i) in subsection (1) by inserting "that is opened before 16 October 2013" after "account", and

(ii) by inserting the following subsection after subsection (8):

"(9) An account shall cease to be a special term account on a date which is-