Regulation 11 The cumulative taxed gain and the cumulative taxed loss

(1)

In the case of any asset or liability to which regulation 10 applies, there shall be calculated the aggregate amount of the initial exchange gains and losses which have accrued to the company as respects the asset or liability for accrual periods earlier than the current period, and—

(a)

if that aggregate amount is positive it shall be the cumulative taxed gain for that asset or liability for the current period,

(b)

if it is negative it shall be the cumulative taxed loss for that asset or liability for the current period, and

(c)

if that aggregate amount is zero or, by virtue of regulation 12, there is no aggregate amount, there shall be taken to be a cumulative taxed loss equal to zero for the period.

(2)

For the purposes of paragraph (1) above—

(a)

the question whether any initial exchange gain or loss has accrued for any period other than the current period shall be determined in accordance with this Part but as if the regulation 2(2) provisions had never come into force; and

(b)

there shall be disregarded any gain or loss which accrued for an accrual period other than the current period unless—

(i)

it has been taken into account in computing the profits or gains of the company holding or owing the asset or liability for the purposes of corporation tax for accounting periods ending before the beginning of the current period, or

(ii)

it would have been so taken into account if the regulation 2(2) provisions had never come into force; or

(iii)

it is equal to zero.