Regulation 12 Assets and liabilities as respects which there is an attributed gain or loss
Subject to regulation 15, in relation to an asset or liability held or owed by a company as respects which—
there is an attributed gain, E, or an attributed loss, F, and
an initial exchange gain or loss (“the actual gain or loss”) accrues to the company for the current period,
Table A or Table B below (as appropriate) shall apply and in any case falling within the first column of that Table, the actual gain or loss shall be deemed not to accrue but, subject to any conditions specified in the second column, the gain or loss specified in relation thereto in the third column shall be deemed to accrue and shall be an initial exchange gain or loss (as the case may be) accruing in the place of the actual gain or loss.
For the purposes of paragraph (1)(b) above, the question whether any initial exchange gain or loss has accrued shall be determined disregarding this Part and the regulation 2(2) provisions.
TABLE A
If there is an attributed gain E
| Case for the current period | Condition | Deemed gain or loss |
|---|---|---|
1 Cumulative loss B and no cumulative taxed gain or loss | B is greater than E | Loss equal to B — E |
2 Cumulative loss B and a cumulative taxed loss C | i B is not greater than E and C is greater than zero | i Gain equal to C |
ii B is greater than E and C is less than (B — E) | ii Loss equal to (B — E) — C | |
iii B is greater than E and C is greater than (B — E) | iii Gain equal to C — (B — E) | |
3 Cumulative loss B and a cumulative taxed gain D | i B is greater than E | i Loss equal to (B — E) + D |
ii B is not greater than E | ii Loss equal to D | |
4 Cumulative gain A and a cumulative taxed gain D | i A is greater than D | i Gain equal to A — D |
ii D is greater than A | ii Loss equal to D — A | |
5 Cumulative gain A and a cumulative taxed loss C | Gain equal to C +plus; A |
TABLE B
If there is an attributed loss F
| Case for the current period | Condition | Deemed gain or loss |
|---|---|---|
1 Cumulative gain A and no cumulative taxed gain or loss | A is greater than F | Gain equal to A — F |
2 Cumulative gain A and a cumulative taxed gain D | i A is not greater than F | i Loss equal to D |
ii A is greater than F and D is less than (A — F) | ii Gain equal to (A — F) — D | |
iii A is greater than F and D is greater than (A — F) | iii Loss equal to D — (A — F) | |
3 Cumulative gain A and a cumulative taxed loss C | i A is greater than F | i Gain equal to (A — F) + C |
ii A is not greater than F and C is greater than zero | ii Gain equal to C | |
4 Cumulative loss B and a cumulative taxed loss C | i B is greater than C | i Loss equal to B — C |
ii C is greater than B | ii Gain equal to C — B | |
5 Cumulative loss B and a cumulative taxed gain D | Loss equal to B + D |