(1) Part 22 of the Principal Act is amended -

(a) in section 644B by inserting the following after subsection (4):

"(5)

(a) This section shall not apply to an accounting period ending after 31 December 2008.

(b) Where an accounting period of a company begins before 31 December 2008 and ends after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on 31 December 2008 and the other beginning on 1 January 2009 and ending on the day on which the accounting period ends, and both parts shall be treated for the purposes of this section as if they were separate accounting periods of the company.",

and

(b) by inserting the following after section 644B:

"644C. Relief from corporation tax for losses from dealing in residential development land.

(1)

(a) In this section -

'corporation tax referable to dealing in residential develop ment land', in relation to an accounting period of a company, means the corporation tax referable to trading income from dealing in residential development land within the meaning of subsection (2) of section 644B as reduced under that section;