Related Commentary  Related HMRC Manuals

725(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”).

725(2)  A corresponding credit must be brought into account for tax purposes.

725(3)  The amount of the credit is–

RG ×  D 
 RL

where–

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