# Corporation Tax Act 2009, Section 725: Reversal of previous accounting loss


(1) This section applies if—
(a) in a period of account a gain is recognised in determining the company's profit or loss (“the recognised gain”),
(b) the gain wholly or partly reverses a loss recognised in a previous period of account (“the reversed loss”), and
(c) a debit was brought into account for tax purposes under Chapter 3 (debits in respect of intangible fixed assets) in respect of that loss (“the tax debit”).
(2) A corresponding credit must be brought into account for tax purposes.
(3) The amount of the credit is—
RG×DRLwhere—
RG is the recognised gain,
D is the tax debit, and
RL is the reversed loss.
(4) This section does not apply to a gain on a revaluation within the meaning of section 723 (see subsection (5) of that section).

---
Source: https://www.legislation.gov.uk/ukpga/2009/4/section/725 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-725
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.