Finance Act 2002 (c. 23)

SCHEDULES

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

Part 3 Credits in respect of intangible fixed assets

Reversal of previous accounting loss

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.