Section 342 of the Taxes Act 1988 (companies in liquidation) shall be amended as follows.

In subsection (5) (assumption as to commencement date of final accounting period where company being wound up), for the words “the inspector may, with the concurrence of the liquidator” there shall be substituted “the liquidator may”.

In subsection (6) for the words from “as if” to the end there shall be substituted “as if the winding-up had commenced with the beginning of that new accounting period”.

This paragraph has effect in relation to the winding up of a company if the date on which the affairs of the company are completely wound up does not occur before the appointed day.