(1) The Principal Act is amended -

(a) in section 396A(1) by substituting the following for the definition of "relevant trading loss":

"'relevant trading loss', in relation to an accounting period of a company, means a loss incurred in the accounting period in a trade carried on by the company, other than -

(a) so much of the loss as is a loss incurred in an excepted trade within the meaning of section 21A, and

(b) any amount which is or would, if subsection (8) of section 403 had not been enacted, be the relevant amount of the loss for the purposes of subsection (4) of that section.",

(b) in section 396B(1), in the definition of "relevant trading loss", by deleting the words after "section 396A",

(c) in section 403(4)(a)(ii) by substituting "group relief except to the extent that it could be set off under section 420A against income of a trade of leasing carried on by the claimant company if paragraph (b) of the definition of relevant trading loss in section 420A were deleted" for "group relief",

(d) in section 420A(1) by substituting the following for the definition of "relevant trading loss":