(1)Subsection (2) applies if—
(a)a person is required to bring a disposal value into account in respect of any plant or machinery, and
(b)any additional VAT rebate or rebates has or have been made to him in respect of the original expenditure.
(2)The amount of the disposal value is limited to the amount of the original expenditure reduced by the total of any additional VAT rebates accruing in previous chargeable periods in respect of that expenditure.
But this is subject to subsections (3) to (6).
(3)Subsection (4) applies if the disposal value is required to be brought into account by section 238(2) (disposal value for additional VAT rebate on its own).
(4)The amount of the disposal value to be brought into account is limited to the amount of the original expenditure reduced by the amount of any disposal values brought into account in respect of the plant or machinery as a result of any earlier event.
(5)If—
(a)the person required to bring the disposal value into account has acquired the plant or machinery as a result of a transaction which was, or a series of transactions each of which was, between connected persons, and
(b)an additional VAT rebate has been made to any party to the transaction, or to any of the transactions,
the amount of the disposal value is limited to the greatest relevant expenditure of any of the parties.
(6)The relevant expenditure of a party is that party’s qualifying expenditure on the provision of the plant or machinery, less any additional VAT rebate made to that party.