725Reversal of previous accounting lossU.K.
This section has no associated Explanatory Notes
(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—
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).