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A lot of Claud butlers had the Olympic ring badge on them due to the 32 Olympics I belive. Loads of info here
I wouldn't touch this personally as it's had a head on, which is a shame. Save your money and spend it on another vintage frame would be my advice.
Tempted by this thread to look into a new project, and came across this Claud Butler with Nervex Lugs, that I might consider picking up:
http://www.ebay.co.uk/itm/Claude-Butler-vintage-bicycle-frame-/201256012987?pt=UK_Bikes_GL&hash=item2edbcb0cbb
Any insight into whether the London with Olympic rings on the headtube badge suggests it is from '48 olympics?