Reversal of previous accounting lossU.K.
17(1)Where in a period of account a gain is recognised in the company’s profit and loss account reversing (in whole or in part) a loss recognised in a previous period of account in respect of which a debit was brought into account for tax purposes under Part 2 (debits in respect of intangible fixed assets), a corresponding credit shall be brought into account for tax purposes.
(2)The amount of the credit to be brought into account for tax purposes is:
where—
Accounting Gain is the amount of the gain recognised for accounting purposes,
Accounting Loss is the amount of the loss that is reversed (in whole or in part), and
Tax Debit is the amount of the tax debit brought into account in respect of the loss.
(3)This paragraph does not apply to a gain on a revaluation within the meaning of paragraph 15.