(1) The Principal Act is amended -

(a) in section 231 -

(i) by renumbering the existing provision as subsection (1) of that section,

(ii) by substituting in that provision "shall be exempt from income tax and corporation tax" for "shall not be taken into account for any purpose of the Tax Acts", and

(iii) by inserting the following after that provision:

"(2) As respects the making of a return of income (being a return which a chargeable person, within the meaning of section 950, is required to deliver under section 951), the Tax Acts shall apply -

(a) as if subsection (1) had not been enacted,

(b) notwithstanding anything to the contrary in Part 41, as if a person to whom profits or gains referred to in subsection (1) arise for any chargeable period (within the meaning of section 321(2)) were, if such person would not otherwise be, a chargeable person (within the meaning of section 950) for that chargeable period,

(c) where a person to whom profits or gains referred to in subsection (1) arise for any chargeable period (within the meaning of section 321(2)) is a person to whom a notice under section 951(6) has been issued, as if such a notice had not been issued, and