HC Deb 04 July 2002 vol 388 c459

Amendment made: No. 45, in page 375, line 11, leave out sub-paragraphs (4) and (5) and insert— '(4) If the sum of the amounts that would, on the assumptions in sub-paragraph (6)(a) and (b), have fallen to be brought into account as regards the contract in accordance with—

  1. Chapter 2 of Part 2 of the Finance Act 1993 (c. 34), or
  2. Chapter 2 of Part 4 of the Finance Act 1994 (c. 9),
for the purposes of computing corporation tax for an old period of the company is different from the sum of the amounts that would, on the assumption in sub-paragraph (6)(c), have fallen to be brought into account as regards the contract in accordance with Schedule 26 for those purposes (if that Schedule had had effect in relation to that period), sub-paragraph (5) shall apply as regards the amount of that difference. (5) Where this sub-paragraph applies, the amount of the difference shall be brought into account—
  1. as a credit under Schedule 26 in the company's first new period, if a greater profit or smaller loss would have been brought into account for the old period under that Schedule, or
  2. as a debit under that Schedule in the company's first new period, if a smaller profit or greater loss would have been brought into account for the old period under that Schedule.
 (6) The assumptions referred to in sub-paragraph (4) are that—
  1. section 137 of the Finance Act 1993 (c. 34),
  2. sections 165 to 168A of the Finance Act 1994 (c. 9), and
  3. paragraphs 23 to 31 of Schedule 26,
 would not have had effect in the case of the contract.'.—[Dawn Primarolo.]

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