(1)This section applies if—
(a)the lease of an asset forms part of a pre-26 November 1996 scheme, but
(b)the conditions in section 902 become met after 26 November 1996.
(2)For the meaning of “forms part of a pre-26 November 1996 scheme”, see section 930.
(3)This Part has effect as if—
(a)a period of account (“period 1”) of the current lessor (“L”) ended immediately before the time at which those conditions become met,
(b)another period of account of L (“period 2”) began immediately before that time and ended immediately after that time, and
(c)another period of account of L began immediately after that time.
(4)If, on the continuous application assumption (see subsection (9)), there would be an amount of cumulative accountancy rental excess for period 2, that amount is the cumulative accountancy rental excess for period 2.
(5)If subsection (4) applies, L is treated for corporation tax purposes as if in period 1 L had been entitled to, and there had arisen to L, rent from the lease of an amount equal to that cumulative accountancy rental excess.
(6)The amount of rent mentioned in subsection (5)—
(a)is in addition to any other rent from the lease for period 1, and
(b)is left out of account for the purposes of section 905 (current lessor taxed by reference to accountancy rental earnings).
(7)Rent within subsection (5) is treated for corporation tax purposes as if it had accrued and L had become entitled to it immediately before the end of period 1.
(8)If, on the continuous application assumption, there would be an amount of cumulative normal rental excess for period 2, that amount is the cumulative normal rental excess for period 2.
(9)In this section “the continuous application assumption” means the assumption that this Chapter (other than this section) had applied in the case of the lease at all times on or after 26 November 1996.
(10)If at any time the person who was the lessor at that time was a person within the charge to income tax, the reference in subsection (9) to this Chapter (other than this section) includes a reference to Chapter 2 of Part 11A of ITA 2007 (other than section 614BX of that Act).