(1) Subject to subsection (1A), where on or after 1 January 2001 a person who has a material interest in an offshore fund, disposes of an interest in the offshore fund and the disposal gives rise to a gain computed in accordance with subsection (2) then, notwithstanding sections 745 and 747, where the gain is not taken into account in computing the profits or gains of a trade carried on by a company, the amount of that gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and -

(a) [deleted]

(b) where the person is not a company, the rate of income tax to be charged on that income shall, notwithstanding section 15, be -

(i) in the case of an offshore fund which is a personal portfolio investment undertaking -

(I) subject to clause (II), at the rate of 60 per cent, and

(II) where the details of the disposal are not correctly included in a return made by the person, at the rate of 80 per cent,

and

(ii) in any other case, at the rate of 38 per cent.

(1A)