This section gives the meaning of “reversal amount” for the purposes of this Part.

If a credit reverses the whole or part of a debit, the reversal amount is found as follows.

• Step 1

  Take however much of the credit reverses the debit.

• Step 2

  Reduce that (if applicable) to however much of the credit reverses the part of the debit that represents expenses of management deductible under section 1219.

• Step 3

  Reduce that (if applicable) to exclude any part of the credit that represents sums otherwise taken into account in calculating for corporation tax purposes the profits and losses of the company for the relevant accounting period or an earlier accounting period.

In this section “relevant accounting period” means the latest accounting period of the company that falls wholly or partly within the period of the credit (see section 1229(1)(a)).