Method statement

Step 1.   Reduce the unutilised CFC loss amount to the extent (if any) that the relevant loss relates to the "all other amounts" class of notional assessable income, except to the extent (if any) that the loss is attributable to losses or outgoings incurred in gaining or producing income of a kind that would be the company's notional assessable income or sometimes-exempt income.

Step 2.   For statutory accounting periods other than the most recent 7 statutory accounting periods ending before the commencement period--reduce the result of step 1 by half.