(1) The Principal Act is hereby amended by the insertion after Schedule 18 of the following new Schedule:
"Schedule 18A Restriction on set-off of Pre-entry Losses
Section 626A.
Application and construction of Schedule
(1) This Schedule shall apply in the case of a company which is or has been a member of a group of companies (in this Schedule referred to as 'the relevant group') in relation to any pre-entry losses of the company.
(2) In this Schedule 'pre-entry loss', in relation to a company, means -
(a) an allowable loss that accrued to the company at a time before it became a member of the relevant group in so far as the loss has not been allowed as a deduction from chargeable gains accruing to the company prior to that time, or
(b) the pre-entry proportion of an allowable loss accruing to the company on the disposal of a pre-entry asset,
and for the purposes of this Schedule the pre-entry proportion of an allowable loss shall be calculated in accordance with paragraph 2.
(3) In
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