(1)Section 40(1)(a) of the [1956 c. 54.] Finance Act 1956 (which exempts from income tax a pension paid under the authority of the [1955 c. 22.] Pensions (India, Pakistan and Burma) Act 1955 if it is the income of a person not resident in the United Kingdom, but not the part of the pension paid by virtue of the [1962 c. 2 (11 & 12 Eliz. 2.).] Pensions (Increase) Act 1962 or earlier Pensions (Increase) Acts) shall have effect subject to the provisions of this section.
(2)The said section 40(1) shall not apply to so much of any pension of the description in paragraph (a) thereof as is paid by virtue of the application to the pension of the [1965 c. 78.] Pensions (Increase) Act 1965 or of any Act passed after this Act for purposes corresponding to the purposes of the said Act of 1965.