59.—(1) In Schedule 22 to the Finance Act 2001 paragraph 17 is amended as follows.
(2) In sub-paragraph (3) (case where sub-paragraph (4) applies)—
(a)in paragraph (a) (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”; and
(b)in paragraph (b) (amount falls to be carried forward to succeeding accounting period under section 75(3) of the Taxes Act 1988)—
(i)for “section 75(3)” substitute “section 76(12) or (13)”; and
(ii)for “expenses of management” substitute “unrelieved expenses”.
(3) In sub-paragraph (4) (amount carried forward under section 75(3) of Taxes Act 1988 to be reduced by loss surrendered)—
(a)for “the amount which” substitute “the total amount which”; and
(b)for “section 75(3)” substitute “section 76(12) or (13)”.