(1) In this section -
'surplus advance corporation tax', in relation to an accounting period of a company, means an amount of advance corporation tax -
(a) to which the company was liable under section 159 in respect of a distribution made before 6 April 1999,
(b) which was paid by the company and not repaid to it, and
(c) which was not set against the company's liability to corporation tax for any preceding accounting period.
(2) Where in the case of an accounting period of a company there is an amount of surplus advance corporation tax, that amount shall be set against the company's liability to corporation tax on any income charged to corporation tax for that accounting period and shall accordingly discharge a corresponding amount of that liability.
(3) For the purposes of this section -
(a) the income of a company charged to corporation tax for any accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exc
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