20(1)Chapter 10 of Part 2 does not apply to any expenditure incurred—
(a)before 26th November 1996, or
(b)before 1st January 2001 in pursuance of a contract entered into before 26th November 1996.
(2)Chapter 10 of Part 2 does not apply to expenditure incurred by any person (“the purchaser”) on the acquisition of a long-life asset from another (“the seller”) if—
(a)the seller has made a Part 2 claim in respect of expenditure incurred on the provision of the asset (“the seller’s expenditure”),
(b)the claim is one which the seller was entitled to make,
(c)the seller’s expenditure did not fall to be treated as long-life asset expenditure for the purposes of the claim, and
(d)the seller’s expenditure would have been so treated if one or more of the assumptions specified in sub-paragraph (3) were made.
(3)The assumptions are that—
(a)expenditure falling within sub-paragraph (1) is not prevented by that sub-paragraph from being long-life asset expenditure,
(b)the seller’s expenditure was not prevented by sub-paragraph (2) from being long-life asset expenditure, and
(c)Chapter 10 of Part 2 or any provision corresponding to it applied for chargeable periods ending before 26th November 1996.
(4)The reference in sub-paragraph (1) to expenditure incurred in pursuance of a contract entered into before 26th November 1996 does not, in the case of a contract varied at any time on or after that date, include a reference to any expenditure incurred under the contract that exceeds the expenditure that would have been incurred if the contract had not been varied.
(5)Expressions used in this paragraph and in Chapter 10 of Part 2 have the same meaning in this paragraph as in that Chapter; and in particular references in this paragraph to a “Part 2 claim” are to be read in accordance with section 103(3).