This paragraph applies where any debit or credit F3... for any accounting period in respect of a loan relationship of a company is allowed by F1generally accepted accounting practice to be treated, in the accounts of the company, as an amount brought into account in determining the value of a fixed capital asset or project.

Notwithstanding the application to it of the treatment allowed by F1generally accepted accounting practice, the debit or credit shall be brought into account for the purposes of corporation tax, for the accounting period for which it is given, in the same way as a debit or credit which, in accordance with F1generally accepted accounting practice, is brought into account in determining the company’s profit or loss for that period.

No debit may be brought into account by virtue of this paragraph if it is taken into account in arriving at the amount of expenditure in relation to which a debit may be given by Schedule 29 to the Finance Act 2002 (gains and losses of a company from intangible fixed assets).