5(1)Regulations may provide that where—
(a)an allowable loss of a prescribed description has accrued to a qualifying company for the purposes of the M1Taxation of Chargeable Gains Act 1992,
(b)the loss has accrued before the company’s commencement day,
(c)all or part of the loss has not been allowed as a deduction under that Act, and
(d)prescribed conditions (whether relating to the making of a claim or otherwise) are fulfilled,
the loss shall be set off against exchange gains accruing to the company.
(2)For the purposes of this paragraph 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.
(3)The regulations may provide that the loss may only be set off—
(a)to the extent that it has not been allowed as a deduction under the Taxation of Chargeable Gains Act 1992;
(b)against exchange gains accruing as regards assets or liabilities of a prescribed description.
(4)The regulations may include rules for ascertaining whether an allowable loss of a prescribed description has or has not been allowed as a deduction under the M2Taxation of Chargeable Gains Act 1992.