28.—(1) Section 211ZA (transfers of business: transfer of unused losses)(1) is amended as follows.
(2) After subsection (2) insert—
“(2A) For the purposes of subsection (2) above, where there is no accounting period of the transferor ending with the day of the transfer—
(a)there is deemed to be such an accounting period,
(b)BLAGAB allowable losses which would have accrued to the transferor in that accounting period are deemed to have accrued to the transferor in that accounting period, and
(c)if those BLAGAB allowable losses would not have been deducted from chargeable gains accruing to the transferor in that accounting period, they are deemed to be relevant unused losses.”
(3) In subsection (3)(a), after “accounting period” insert “ending”.
Section 211ZA was inserted by paragraph 21 of Schedule 33 to the Finance Act 2003.