s 20 The non-qualifying pool
(1) The non-qualifying pool consists of the company’s non-qualifying losses, allocated to the pool in accordance with sub-paragraph (2). (2) A non-qualifying loss is allocated to the pool by adding the amount of the non-qualifying loss to the pool in the period of the loss. (3) In the case of a non-qualifying loss incurred in an accounting period ending on or before 31st December 2003, the period of the loss shall be taken for the purposes of sub-paragraph (2) to be the first accounting period of the company that ends on or after 1st January 2004. (4) The amount in the non-qualifying pool is subject to reductions in accordance with the following provisions of this Part of this Schedule. (5) Where a reduction in the amount in the non-qualifying pool falls to be made in any accounting period— (a) the reduction is to be made after the addition to the pool of any non-qualifying loss allocated to the pool in that period in accordance with sub-paragraph (2), and (b) references to the amount in the non-qualifying pool shall be construed accordingly.