(1)For the purposes of section 74, the “chargeable amount” is determined by taking whichever is the smallest of amounts A, B and C.
(2)Amount A is the amount of the relevant decrease in the individual’s contribution to the relevant trade which constitutes the chargeable event.
(3)Amount B is the amount given by—
(a)taking, at the time immediately after the occurrence of the chargeable event, the amount of the total losses claimed which are relevant losses, and
(b)reducing that amount (but not below nil) by any reclaimed relief at that time.
(4)Amount C is the amount given by—
(a)taking the amount by which, at the time immediately after the occurrence of the chargeable event, the total losses claimed exceed the individual’s contribution to the relevant trade, and
(b)reducing that amount (but not below nil) by any reclaimed relief at that time.
(5)This section is deemed to have come into force on 2nd December 2004.