11. Amendment of section 19 of the principal enactment

Section 19 of the principal enactment is hereby amended in subsection (3) of that section, by the substitution for the words “in calculating exempt amounts.”, of the following: -

“in calculating exempt amounts.

For the purpose of this subsection, where any company has an unrelieved loss from business to deduct in the current year of assessment from a period during which that company had operated as a small and medium enterprise and, if-

the unrelieved loss was a profit in the year of assessment in which that unrelieved loss was incurred and which would have been taxed at a reduced rate; and

the current year business income is not taxable at the same reduced rate as in the year referred to in the paragraph (a), that unrelieved loss shall, (subject to paragraph (b) of subsection (1)), be deemed to be a loss (if it would have been a taxable profit) taxed at the same rate of the current year.”.