http://www.legislation.gov.uk/id/ukpga/2009/4

Part 8Intangible fixed assets

Chapter 2Credits in respect of intangible fixed assets

725Reversal of previous accounting loss

(1)

This section applies if—

(a)

in a period of account a gain is recognised in determining the company's profit or loss (“the recognised gain”),

(b)

the gain wholly or partly reverses a loss recognised in a previous period of account (“the reversed loss”), and

(c)

a debit was brought into account for tax purposes under Chapter 3 (debits in respect of intangible fixed assets) in respect of that loss (“the tax debit”).

(2)

A corresponding credit must be brought into account for tax purposes.

(3)

The amount of the credit is—

RG \times \frac{D}{RL}

where—

RG is the recognised gain,

D is the tax debit, and

RL is the reversed loss.

(4)

This section does not apply to a gain on a revaluation within the meaning of section 723 (see subsection (5) of that section).