Section 732 Reversal of previous accounting gain
This section applies if—
in a period of account a loss is recognised in determining a company's profit or loss (“the recognised loss”),
the loss wholly or partly reverses a gain recognised in a previous period of account (“the reversed gain”), and
a credit was brought into account for tax purposes under Chapter 2 (credits in respect of intangible fixed assets) in respect of that gain (“the previous credit”).
A corresponding debit must be brought into account for tax purposes.
The amount of that debit is—
where—
RL is the recognised loss,
PC is the previous credit, and
RG is the reversed gain.
References in this section to the recognition of a loss that reverses a gain recognised in a previous period of account do not include a loss recognised—
by way of amortisation of an asset that has previously been the subject of a revaluation, or
as a result of an impairment review of such an asset.
In subsection (4) “revaluation” has the same meaning as in section 723 (see subsection (5) of that section).
Notes on Part 8
Modifications
- C1
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
- C2
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
- C3
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
- C4
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
- C5
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
- C6
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
- C7
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)