Corporation Tax Act 2009 section 878

Exclusion of credits or debits brought into account under other provisions

Section 878 prevents double counting by ensuring that credits or debits already recognised under certain other intangible fixed asset provisions are not also brought into account under this Chapter.

• Where a credit or debit representing an accounting difference is already recognised for tax purposes under specified provisions, it does not need to be brought into account again under this Chapter.
• The specified provisions are section 723 (revaluation of intangible fixed assets), section 725 (reversal of a previous accounting loss), and section 732 (reversal of a previous accounting gain).
• The rule gives priority to the other intangible fixed asset provisions where there would otherwise be an overlap.
• The effect is to avoid any amount being taxed or relieved twice when it falls within both this Chapter and the revaluation or reversal rules.