SCHEDULE 16 Exchange gains and losses: transitionals
Attributed gain or loss
3
(1)
Regulations may provide that—
(a)
an amount found in accordance with prescribed rules shall be attributed to an existing asset or liability, and
(b)
the amount shall be characterised as a gain or loss in accordance with prescribed rules.
(2)
The regulations may provide that an attributed gain or loss shall be set off against exchange losses or exchange gains accruing as regards the asset or liability; and for this purpose—
(a)
an exchange gain is an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain;
(b)
an exchange loss is an exchange loss of a trade or an exchange loss of part of a trade or a non-trading exchange loss.
(3)
The regulations may provide that if an event of a prescribed description occurs as regards the asset or liability at a time falling on or after the commencement day of the company concerned and at a time when all or part of an attributed gain or loss is outstanding—
(a)
an initial exchange gain or initial exchange loss of an amount found in accordance with prescribed rules shall be treated as accruing to the company as regards the asset or liability, or
(b)
a chargeable gain or allowable loss of an amount found in accordance with prescribed rules shall be treated as accruing to the company as regards the asset or liability for the purposes of the M1Taxation of Chargeable Gains Act 1992.
(4)
The regulations may provide that where—
(a)
apart from provision under this sub-paragraph, an allowable loss would be treated as accruing by virtue of provision made under sub-paragraph (3)(b) above, and
(b)
the company concerned makes an election in accordance with prescribed rules,
the loss shall not be treated as accruing and relief of an amount equal to it shall be given to the company in such form and manner as may be prescribed.
(5)
The regulations may provide that where provision under this paragraph has effect the outstanding attributed gain or loss shall be treated as reduced or extinguished.
(6)
The regulations may make provision—
(a)
as to the time when an initial exchange gain or initial exchange loss is to be treated as accruing and as to the extent to which it is to be treated as an exchange gain or loss of a trade or of part of a trade or as a non-trading exchange gain or loss;
(b)
as to the occasion on which a chargeable gain or allowable loss is to be treated as accruing;
(c)
as to other matters relating to setting off against, or the accrual of, gains or losses as mentioned in this paragraph.