58.—(1) In Schedule 22 to the Finance Act 2001(1) paragraph 14 is amended as follows.
(2) In sub-paragraph (6) (loss treated under section 432AB(3) of the Taxes Act 1988 as expenses of management under section 76) for “as an amount of expenses of management under section 76 of that Act” substitute “for the purposes of section 76 of that Act as expenses payable which fall to be brought into account at Step 3 in subsection (7) of that section”.
(3) In sub-paragraph (7) (no amount carried forward to succeeding accounting period under section 75(3) of the Taxes Act 1988)—
(a)for “section 75(3)” substitute “section 76(12) or (13)”; and
(b)for “expenses of management” substitute “unrelieved expenses”.
(4) In sub-paragraph (8) (Schedule A loss where amount to be carried forward under section 75(3) of the Taxes Act 1988)—
(a)for “section 75(3)” substitute “section 76(12) or (13)”; and
(b)in paragraph (b) for “the amount” substitute “the total amount”.
(5) For sub-paragraph (9) (disregard of amounts brought forward from either periods under section 75(3) of the Taxes Act 1988 etc) substitute—
“(9) In determining for the purposes of sub-paragraph (7) and (8) above whether there is an amount which falls to be carried forward under subsection (12) or (13) of section 76 of Taxes Act 1988, there shall be disregarded any amounts brought forward from an earlier accounting period and treated for the purposes of that section as expenses payable which fall to be brought into account for that period in question—
(a)in accordance with Step 6 in subsection (7) of that section, by virtue of a previous application of subsection (12) or (13) of that section, or
(b)in accordance with Step 3 in subsection (7) of that section, by virtue of paragraph 4(4) of Schedule 11 to the Finance Act 1996 (loan relationships deficit carried forward and so brought into account).”.