11(1)This paragraph applies if—
(a)property which is plant or machinery is the subject of a relevant transfer,
(b)section 343 of the 1988 Act (company reconstructions without a change of ownership) does not apply in relation to the transfer, and
(c)the transfer scheme concerned contains provision for the disposal value of the property to be taken for the purposes of the Capital Allowances Acts to be of an amount specified in or determined in accordance with the scheme.
(2)For the purposes of the Capital Allowances Acts—
(a)the provision mentioned in sub-paragraph (1)(c) is to have effect (instead of section 26(1) or 59 of the 1990 Act) for determining an amount as the disposal value of the property or the price at which a fixture is to be treated as sold;
(b)the transferee is to be taken to have incurred expenditure of that amount on the provision of the property;
(c)in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.
(3)A provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision—
(a)for a determination to be made by the Secretary of State in a manner described in the scheme;
(b)for a determination to be made by reference to factors so described or to the opinion of a person so described;
(c)for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.
(4)The Treasury’s consent is required for the making or modification of a determination under a provision mentioned in sub-paragraph (1)(c).
(5)The transferee’s consent is also required for such a modification after the relevant transfer takes effect.
(6)If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(c) all necessary adjustments—
(a)must be made by making assessments or by repayment or discharge of tax, and
(b)must be made notwithstanding any limitation on the time within which assessments may be made.
(7)In this paragraph “the Capital Allowances Acts” has the same meaning as in the Tax Acts and “fixture” has the same meaning as in Chapter VI of Part II of the 1990 Act.