(1) Chapter 4 of Part 27 of the Principal Act is amended -

(a) in section 747B(1) -

(i) by inserting the following after the definition of "chargeable period":

"'deemed disposal' means a disposal of the type provided for in section 747E(6);",

and

(ii) by inserting the following after the definition of "offshore state":

"'relevant event' means the ending of a relevant period, where 'relevant period' in relation to an offshore fund means a period of 8 years beginning with the acquisition of a material interest in the fund and each subsequent period of 8 years beginning immediately after the preceding relevant period;",

and

(b) in section 747E -

(i) in subsection (3) -

(I) by renumbering the existing provision as paragraph (a), and

(II) by inserting the following after paragraph (a):

"(b) Where in respect of a material interest in an offshore fund -

(i) a gain on a disposal is treated as nil in accordance with paragraph (a),