4(1)This paragraph applies in relation to a chargeable period (“the second straddling period”) which begins before 1 January 2016 and ends on or after that date.U.K.
(2)The maximum allowance under section 51A of CAA 2001 for the second straddling period is the sum of each maximum allowance that would be found if—
(a)the period beginning with the first day of the chargeable period and ending with 31 December 2015, and
(b)the period beginning with 1 January 2016 and ending with the last day of the chargeable period,
were treated as separate chargeable periods.
(3)But, so far as concerns expenditure incurred on or after 1 January 2016, the maximum allowance under section 51A of CAA 2001 for the second straddling period is the maximum allowance, calculated in accordance with sub-paragraph (2), for the period mentioned in paragraph (b) of that sub-paragraph.