4 Amendment of regulation 3 (exchange gains or losses arising from liabilities or assets hedging shares etc)
1 In regulation 3 (exchange gains or losses arising from liabilities or assets hedging shares etc), after paragraph (1) insert—

“1ZA But where the matched shares, ships or aircraft are matched after the company became party to the loan relationship, paragraph (1) only applies to a just and reasonable proportion of any exchange gain or loss having regard to—
(a) the fraction of the accounting period for which the shares, ships or aircraft are matched with the loan relationship,
(b) the fraction of the accounting period for which the company was party to the loan relationship, and
(c) fluctuations in exchange rates during the accounting period.”

.
2 In paragraph (3), in condition 1 omit “for the accounting period,”.