Part 8

Intangible fixed assets
Chapter 3

Debits in respect of intangible fixed assets

Reversal of previous accounting gain
732
1
This section applies if—
a
in a period of account a loss is recognised in determining a company's profit or loss (“the recognised loss”),
b
the loss wholly or partly reverses a gain recognised in a previous period of account (“the reversed gain”), and
c
a credit was brought into account for tax purposes under Chapter 2 (credits in respect of intangible fixed assets) in respect of that gain (“the previous credit”).
2
A corresponding debit must be brought into account for tax purposes.
3
The amount of that debit is—
RL × PC/RG
where—
RL is the recognised loss,
PC is the previous credit, and
RG is the reversed gain.
4
References in this section to the recognition of a loss that reverses a gain recognised in a previous period of account do not include a loss recognised—
a
by way of amortisation of an asset that has previously been the subject of a revaluation, or
b
as a result of an impairment review of such an asset.
5
In subsection (4) “revaluation” has the same meaning as in section 723 (see subsection (5) of that section).
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5