SCHEDULES

SCHEDULE 29Gains and losses of a company from intangible fixed assets

Part 3Credits in respect of intangible fixed assets

17Reversal of previous accounting loss

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:

AccountingGain×Tax DebitAccounting Lossmath

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.