CFM15605 - SI 2002 No. 1970

Calculation of the amount of any net gain or net loss for the purposes of regulation 4

5.—(1) The amount of any net gain or net loss referred to in regulation 4(1) shall be calculated in accordance with this regulation.

(2) Subject to paragraph (4) below, the amount of any net gain or loss shall be calculated by finding the aggregate of the amounts representing exchange gains or losses which accrued in relation to liabilities matched with the asset disposed of during the period in which the asset was held by the company disposing of it.

(3) The aggregate referred to in paragraph (2) above shall be found in any manner that is just and reasonable having regard to—

(a) the effect of regulation 6 in the accounting period in which the disposal occurs or in any earlier accounting period; and
(b) the way in which such an aggregate was found for any earlier accounting period in accordance with this regulation.

(4) Notwithstanding that a loss accruing to a company on the disposal of the asset is not deductible except from a chargeable gain of the kind mentioned in section 18(3) of the 1992 Act, where the aggregate referred to in paragraph (2) would be an amount of net gain for the purposes of regulation 4(1) in relation to that disposal, the amount of such a loss may be deducted from the aggregate.