(1) In this section -
'initial balance' means the amount represented by the formula -
A - B
where -
A is the amount of the initial instalment of preliminary tax paid by the surrendering company for the relevant period in accordance with subsection (2) of section 959AS, and
B is -
(a) where the relevant period started on the surrendering company coming within the charge to corporation tax -
(i) 45 per cent of the tax payable by the surrendering company for the relevant period, or
(ii) where subsection (4) of section 959AN applies in relation to that period, a nil amount,
or
(b) in any other case, the lower of -
(i) 45 per cent of the tax payable by the surrendering company for the relevant period, or
(ii) 50 per cent of the sum of the corresponding corporation tax for the preceding accounting period and the corresponding income tax for the preceding accounting period, which is payable by the surrendering company;
'final balance' means the amount represented by the formula -
C - D
where
…