Finance Act 2002

Revaluation U.K.

15 (1) Where in a period of account the accounting value of an intangible fixed asset is increased on a revaluation, a credit shall be brought into account for tax purposes.

(2) The amount of the credit for tax purposes is—

(a) the amount corresponding for tax purposes to the increase in value (see sub-paragraph (3)), or

(b) if less, the net aggregate amount of relevant tax debits previously brought into account (see sub-paragraph (4)).

(3) The amount corresponding for tax purposes to the increase in value is:

where—

Accounting Adjustment is the amount of the increase in the accounting value of the asset,

Tax Value is the tax written down value of the asset immediately before the revaluation, and

Accounting Value is the accounting value of the asset by reference to which the revaluation is carried out.

(4) The net aggregate amount of relevant tax debits previously brought into account is:

where—

Previous Debits is the total amount of debits previously brought into account for tax purposes in respect of the asset under paragraph 9 (writing down on accounting basis), and

Previous Credits is the total amount of any credits previously brought into account for tax purposes in respect of the asset under this paragraph.

(5) For the purposes of this paragraph a “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 paragraph does not apply to an asset in respect of which an election has been made under paragraph 10 (election for writing down at fixed rate).