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(2) Where expenditure incurred on the provision of an improved installation includes expenditure on new machinery or new plant or on the construction of a new building or structure which is to be an industrial building or structure to be occupied for the purposes of that trade a relevant trade, then the amount of that expenditure qualifying for relief under section 380T(1)(b) or 380U(1)(b) 380U(b) shall be the expenditure on the new machinery or the new plant or on the construction of a new building or structure, as the case may be, reduced by an amount representing improvement and the amount of expenditure representing improvement shall be such proportion of the expenditure in relation to the new machinery or new plant or in relation to the construction of a new building or structure, as the case may be, as appears to the inspector (or on appeal, the Appeal Commissioners) to be just and reasonable as representing costs relating to providing increased capacity or improved efficiency or productivity.

(2) Where expenditure incurred on the provision of an improved installation includes expenditure on new machinery or new plant or on the construction of a new building or structure which is to be an industrial building or structure to be occupied for the purposes of that trade a relevant trade, then the amount of that expenditure qualifying for relief under section 380T(1)(b) or 380U(1)(b) 380U(b) shall be the expenditure on the new machinery or the new plant or on the construction of a new building or structure, as the case may be, reduced by an amount representing improvement and the amount of expenditure representing improvement shall be such proportion of the expenditure in relation to the new machinery or new plant or in relation to the construction of a new building or structure, as the case may be, as appears to the inspector (or on appeal, the Appeal Commissioners) to be just and reasonable as representing costs relating to providing increased capacity or improved efficiency or productivity.