Regulation 20 Deemed gains and losses
Table C or D set out below (as appropriate) shall apply in relation to an asset or liability as respects which an initial exchange gain or loss accrues to a company for an accrual period (“the current period”), determined disregarding this regulation and regulations 21 and 22 and the regulation 2(2) provisions, and as respects which there is—
a post—commencement net gain, X, or
a post—commencement net loss, Y,
and if the primary condition and the secondary condition (if any) are satisfied, any initial exchange gain or loss which (apart from this regulation) would accrue to the company for the current period (“the actual gain or loss”) shall be deemed not to accrue but the gain or loss specified in the third column of the Table in relation to those conditions 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.
TABLE C
If there is a post—commencement net gain X
| Primary condition | Secondary condition | Deemed gain or loss |
|---|---|---|
1 Overall exchange gain Z and no cumulative taxed gain or loss | X is greater than Z | Gain equal to Z |
2 Overall exchange gain Z and a cumulative taxed gain G | i Z is not greater than G and X is greater than Z | i Loss equal to G — Z |
ii Z is greater than G and X is greater than Z | ii Gain equal to Z — G | |
iii X is not greater than Z nor greater than G | iii Loss equal to G — X | |
iv X is not greater than Z but is greater than G | iv Gain equal to X — G | |
3 Overall exchange gain Z and a cumulative taxed loss L | i X is greater than Z | i Gain equal to Z + L |
ii X is not greater than Z | ii Gain equal to X + L | |
4 Overall exchange loss W and no cumulative taxed gain or loss | Loss equal to zero | |
5 Overall exchange loss W and a cumulative taxed gain G | Loss equal to G | |
6 Overall exchange loss W and a cumulative taxed loss L | Gain equal to L |
TABLE D
If there is a post—commencement net loss Y
| Primary condition | Secondary condition | Deemed gain or loss |
|---|---|---|
1 Overall exchange loss W and no cumulative taxed gain or loss | Y is greater than W | Loss equal to W |
2 Overall exchange loss W and a cumulative taxed loss L | i W is not greater than L and Y is greater than W | i Gain equal to L — W |
ii W is greater than L and Y is greater than W | ii Loss equal to W — L | |
iii Y is not greater than W nor greater than L | iii Gain equal to L — Y | |
iv Y is not greater than W but is greater than L | iv Loss equal to Y — L | |
3 Overall exchange loss W and a cumulative taxed gain G | i Y is greater than W | i Loss equal to W + G |
ii Y is not greater than W | ii Loss equal to Y + G | |
4 Overall exchange gain Z and no cumulative taxed gain or loss | Loss equal to zero | |
5 Overall exchange gain Z and a cumulative taxed loss L | Gain equal to L | |
6 Overall exchange gain Z and a cumulative taxed gain G | Loss equal to G |