1Where tax is paid under the law of a territory outside the United Kingdom in respect of income which, for profits tax purposes, is or forms part of the profits for a chargeable accounting period ending at or before the end of March, nineteen hundred and fifty—
(a)credit for the tax so paid shall not be allowed by way of unilateral relief against the profits tax; and
(b)the tax so paid may be deducted in computing the amount of the profits for profits tax purposes notwithstanding that credit (being credit by way of unilateral relief) falls to be allowed therefor against income tax; and
(c)where the income is, for income tax purposes, income of the year 1950-51, sub-paragraph (3) of paragraph 7 of Part I of the Ninth Schedule to the Finance Act, 1947, as modified by paragraph 2 of Part II of this Schedule, shall apply or not apply in relation to so much of the tax so paid as cannot be allowed as a credit against income tax according as the next chargeable accounting period of the trade or business in question does or does not end after the said end of March:
Provided that where the said next chargeable accounting period falls partly before and partly after the said end of March, the tax which would, but for this proviso, go to reduce the amount of the profits for the said next chargeable accounting period shall be apportioned between the two parts of the said next chargeable accounting period, and so much only of that tax as is apportioned to the second part of the period shall go to reduce the profits for that period.
2Where tax is paid under the law of a territory outside the United Kingdom in respect of income which, for profits tax purposes, is or forms part of the profits for a chargeable accounting period falling partly before and partly after the said end of March, the tax so paid shall be apportioned between the two parts of the period, and sub-paragraphs (a) and (b) of paragraph 1 of this Part of this Schedule shall apply in relation to the tax apportioned to the first part of the period as they apply in relation to income which, for profits tax purposes, is or forms part of the profits for a chargeable accounting period ending at or before the said end of March.
3Profits tax for any chargeable accounting period ending at or before the said end of March shall be left out of account in ascertaining, under the proviso to subsection (2) of section thirty-six of this Act, the total amount of the credit by way of unilateral relief which may be allowed in respect of any tax.
4Profits tax for any chargeable accounting period falling partly before and partly after the said end of March shall be apportioned between the two parts of the period and—
(a)the credit by way of unilateral relief to be applied in reducing the amount of the profits tax for that period shall not exceed so much of the profits tax as is apportioned to the second part of the period; and
(b)paragraph 3 of this Part of this Schedule shall apply in relation to so much of the profits tax as is apportioned to the first part of the period as it applies in relation to profits tax for a chargeable accounting period ending at or before the said end of March.
5Any apportionment falling to be made under this Part of this Schedule of—
(a)tax which would, but for the proviso to paragraph 1 thereof, go to reduce profits for a chargeable accounting period falling partly before and partly after the said end of March; or
(b)tax paid under the law of a territory outside the United Kingdom in respect of income which, for profits tax purposes, is or forms part of the profits for any such chargeable accounting period; or
(c)profits tax for any such chargeable accounting period,
shall be made by reference to the number of months or fractions of a month in the two parts of the chargeable accounting period.