Reversal of previous accounting gainU.K.
12(1)Where in a period of account a loss is recognised in the company’s profit and loss account reversing (in whole or in part) a gain recognised in a previous period of account in respect of which a credit was brought into account for tax purposes under Part 3 (credits in respect of intangible fixed assets), a corresponding debit shall be brought into account for tax purposes.
(2)The amount of the debit to be brought into account for tax purposes is:
where—
Accounting Loss is the amount of the loss recognised for accounting purposes,
Accounting Gain is the amount of the gain that is (in whole or in part) reversed, and
Previous Credit is the amount of the credit previously brought into account for tax purposes in respect of the gain.
(3)References in this paragraph to the recognition of a loss reversing a gain recognised in a previous period of account do not include a loss recognised by way of amortisation, or as a result of an impairment review, of an asset that has previously been the subject of a revaluation within the meaning of paragraph 15.