The Exchange Gains and Losses (Bringing into Account Gains or Losses) (Amendment) Regulations 2010

Substitution of regulation 4

4.  For regulation 4, substitute—

“General rule for bringing amounts into account

4.— (1) For the purposes of the 1992 Act, the amount or value of the consideration for the disposal of the asset shall be—

(a) increased by the amount of any net gain, and

(b) subject to paragraph (2) below, reduced by the amount of any net loss.

This is subject to paragraph (4) below and regulations 6 and 8.

(2) If the amount of any net loss exceeds the amount or value of the consideration that would be brought into account but for the application of this regulation, the amount of the excess of the net loss shall be treated as consideration for the acquisition of the asset for the purposes of section 38(1)(a) of the 1992 Act.

(3) If section 42 of the 1992 Act applies, this regulation shall not apply to determine the amount or value of the consideration for the disposal referred to as “A” in that section in apportioning the sums attributable to the asset.

(4) Paragraph (1) above does not apply if, immediately before the disposal, the asset is a foreign business asset other than shares not held on trading account.”.