Corporation Tax Act 2009

723 Revaluation

(1) If in a period of account there is an increase in the accounting value of an intangible fixed asset on a revaluation, a credit must be brought into account for tax purposes.

(2) The amount of the credit is the lesser of—

(a) the amount corresponding for tax purposes to the increase (see subsection (3)), and

(b) the net total of relevant previous tax debits (see subsection (4)).

(3) The amount corresponding for tax purposes to the increase is—

where—

• I is the increase,

• WDV is the tax written-down value of the asset immediately before the revaluation, and

• AV is the accounting value of the asset by reference to which the revaluation is carried out.

(4) The net total of relevant previous tax debits is—

D - C

where—

• D is the total debits previously brought into account for tax purposes in respect of the asset, and

• C is the total credits so brought into account.

(5) For the purposes of this section “revaluation” includes—

(a) the valuation of an asset for which a value is shown in the company’s balance sheet, but which has not previously been the subject of a valuation, and

(b) the restoration of past losses.

(6) This section does not apply to an asset in respect of which an election has been made under section 730 (writing down at fixed rate: election for fixed-rate basis).