Commentary on Sections Overview Chapter 2: Credits in respect of intangible fixed assets Section 725: Reversal of previous accounting loss
1994.This section applies to an accounting gain that reverses a previous loss for which relief was given. It is based on paragraph 17 of Schedule 29 to FA 2002.
1995.Subsection (3) ensures that if the tax debit in the previous period was not the same figure as the accounting loss, the credit on the reversal of the loss is the accounting gain adjusted in the ratio which the debit bears to the loss.
1996.There is a parallel, converse rule in section 732.