This section applies where a company for a consideration disposes of, or of an interest in, any assets at a time when it is an E&A company and declares, in the company's return for the chargeable period in which the disposal takes place—
that the whole or any specified part of the consideration will be applied, within the permitted reinvestment period—
on E&A expenditure at a time when the company is an E&A company, or
on expenditure on oil assets which are taken into use, and used only, for the purposes of the company's ring fence trade, and
that the company intends to make a claim under section 198J(2) or (4) in relation to the disposal.
Until the declaration ceases to have effect, section 198J applies as if the expenditure had been incurred and the person had made such a claim.
The declaration ceases to have effect as follows—
if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim under section 198J, on the day on which it is so withdrawn or superseded, and
if and to the extent that it is not so withdrawn or superseded, on the relevant day.
On the declaration ceasing to have effect in whole or in part, all necessary adjustments—
are to be made by making or amending assessments or by repayment or discharge of tax, and
are to be so made despite any limitation on the time within which assessments or amendments may be made.
In this section "the relevant day" means the fourth anniversary of the last day of the accounting period in which the disposal took place.
For the purposes of this section—
sections (6), (10) and (11) of section 152 apply as they apply for the purposes of that section, except that in subsection (6) the reference to a trade is to be read as a reference to E&A activities or a ring fence trade, and
terms used in this section which are defined in section 198J have the meaning given by that section.