§ 16.—(1) Section 20 of the Finance Act 1954 (under which. as amended by section 18 of the Finance Act 1962, capital allowances for a year of assessment may be included in a 1642 claim for a loss sustained in the year of assessment which is the basis year) shall, notwithstanding the words "but not after the year 1964–65" in paragraph 20(1) of Schedule 15 to the Finance Act 1965. apply in relation to claims by a company for losses sustained in the year 1965–66, and sub-paragraph (2) of the said paragraph 20 (under which relief for a loss in the year 1965–66 may, so far as it cannot be given against income tax, be given against corporation tax) shall apply accordingly.
§ (2) For the purpose of the said section 20 as applied by sub-paragraph (1) above the company shall be treated, in the case where the year 1965–66 is not the basis year for the year itself, on the footing that
- (a) section 46(2) of the Finance Act 1965 (which excludes companies from the charge to income tax after the year 1965–66) did not apply in relation to the trade in question, and
- (b) the period on the profits or gains of which income tax for the year 1966–67 would fall to be finally computed were the twelve months starting at the time at which the company came within the charge to corporation tax in respect of the trade.
§ and relief under the said section 20 may be given accordingly by reference to what, on that footing, would have been the company's capital allowances for the year 1966–67 for income tax purposes.
§ (3) Relief in respect of the same matter shall not be given both in a manner authorised under this paragraph and in some other manner.