(1)This section applies if capital expenditure incurred by the current lessor (“L”) in respect of the leased asset is or has been taken into account for the purposes of any allowance or charge under—
(a)Part 2 of CAA 2001 (plant and machinery allowances),
(b)Part 5 of that Act (mineral extraction allowances), or
(c)Part 8 of that Act (patent allowances).
(2)The Part of that Act in question (“the relevant Part”) has effect as if the relevant occasion were an event (“the relevant event”) as a result of which a disposal value is to be brought into account of an amount equal to the amount or value of the major lump sum (but subject to any applicable limiting provision).
(3)In this section “limiting provision” means a provision to the effect that the disposal value of the asset in question is not to exceed an amount (“the limit”) described by reference to capital expenditure incurred in respect of the asset.
(4)Subsection (5) applies if—
(a)as a result of subsection (2), a disposal value (“the relevant disposal value”) falls or has fallen to be brought into account by a person in respect of the leased asset for the purposes of the relevant Part, and
(b)a limiting provision has effect in the case of that Part.
(5)The limiting provision has effect (so far as it would not otherwise do so), in relation to the relevant disposal value and any simultaneous or later disposal value, as if—
(a)it did not limit any particular disposal value, but
(b)it limited the total amount of all the disposal values brought into account for the purposes of the relevant Part by L in respect of the leased asset.
(6)In subsection (5) “simultaneous or later disposal value” means any disposal value which falls to be brought into account by L in respect of the leased asset as a result of any event occurring at the same time as, or later than, the relevant event.