228Effect of election: relaxation of restriction on B’s qualifying expenditure, etc.
(1)The effect of an election under section 227 in relation to B is that subsections (2) and (3) apply instead of section 218 or 224 (restriction on B’s qualifying expenditure).
(2)The amount, if any, by which B’s expenditure under the relevant transaction exceeds D is to be left out of account in determining B’s available qualifying expenditure.
(3)D is whichever of the following is the smaller—
(a)if S incurred capital expenditure on the provision of the plant or machinery, the amount of that expenditure;
(b)if a person connected with S incurred capital expenditure on the provision of the plant or machinery, the amount of that expenditure.
(4)Nothing in subsections (1) to (3) prevents section 225 from applying.
(5)The effect of an election under section 227 in relation to S is—
(a)that no allowance is to be made to S under this Act in respect of the capital expenditure on the provision of the plant or machinery, and
(b)that the whole of that expenditure must be left out of account in determining the amount for any period of Ss' available qualifying expenditure for the purposes of this Part.