992Harbour reorganisation schemes: capital allowances etcU.K.
(1)For the purposes of this section—
(a)“relevant allowance” means any allowance that would have fallen to be made to the transferor under CAA 2001 if the transferor had continued to carry on the trade, and
(b)“relevant charge” means any charge that would have fallen to be made on the transferor under CAA 2001 if the transferor had continued to carry on the trade.
(2)All relevant allowances and charges are to be made in accordance with CAA 2001 to or on the transferee (and not the transferor).
(3)The amount of a relevant allowance or charge is to be calculated as if—
(a)the transferee had been carrying on the trade since the transferor had begun to do so, and
(b)everything done to or by the transferor had been done to or by the transferee.
(4)A sale or transfer which, on the transfer of the trade, is made by the transferor to the transferee of any assets in use for the purposes of the trade is not treated as giving rise to a relevant allowance or charge.