Schedules
Schedule 3Transitionals and savings
Part 4Plant and machinery allowances
Long-life assets
20Long-life asset expenditure
1
Chapter 10 of Part 2 does not apply to any expenditure incurred—
a
before 26th November 1996, or
b
before 1st January 2001 in pursuance of a contract entered into before 26th November 1996.
2
Chapter 10 of Part 2 does not apply to expenditure incurred by any person (“the purchaser”) on the acquisition of a long-life asset from another (“the seller”) if—
a
the seller has made a Part 2 claim in respect of expenditure incurred on the provision of the asset (“the seller’s expenditure”),
b
the claim is one which the seller was entitled to make,
c
the seller’s expenditure did not fall to be treated as long-life asset expenditure for the purposes of the claim, and
d
the seller’s expenditure would have been so treated if one or more of the assumptions specified in sub-paragraph (3) were made.
3
The assumptions are that—
a
expenditure falling within sub-paragraph (1) is not prevented by that sub-paragraph from being long-life asset expenditure,
b
the seller’s expenditure was not prevented by sub-paragraph (2) from being long-life asset expenditure, and
c
Chapter 10 of Part 2 or any provision corresponding to it applied for chargeable periods ending before 26th November 1996.
4
The reference in sub-paragraph (1) to expenditure incurred in pursuance of a contract entered into before 26th November 1996 does not, in the case of a contract varied at any time on or after that date, include a reference to any expenditure incurred under the contract that exceeds the expenditure that would have been incurred if the contract had not been varied.
5
Expressions used in this paragraph and in Chapter 10 of Part 2 have the same meaning in this paragraph as in that Chapter; and in particular references in this paragraph to a “Part 2 claim” are to be read in accordance with section 103(3).