769O Transitional measures.

(1) Subject to subsection (4) for the purposes of determining the qualifying profits in relation to a qualifying asset for accounting periods beginning on or after 1 January 2016 but on or before 31 December 2019—

(a)acquisition costs in relation to a qualifying asset shall include any acquisition costs incurred prior to 1 January 2016,

(b)group outsourcing costs in relation to a qualifying asset shall include any group outsourcing costs incurred prior to 1 January 2016 and where group outsourcing costs incurred prior to 1 January 2016 related to more than one qualifying asset, those costs shall be apportioned on a just and reasonable basis, and

(c)qualifying expenditure on the qualifying asset shall—

(i)be calculated with reference to qualifying expenditure in relation to all qualifying assets in the 48 month period ending on the last day of the accounting period, and

(ii)be—

(I)calculated in accordance with this Chapter, and

(II)calculated as a portion of the total qualifying expenditure on qualifying assets, where the expenditure is incurred prior to 1 January 2016.

(2)Subject to subsection (4), for the purposes of determining the qualifying profits in relation to a qualifying asset for accounting periods beginning on or after 1 January 2020—

(a)acquisition costs in relation to a qualifying asset shall include any acquisition costs incurred prior to 1 January 2016.

(b)group outsourcing costs in relation to a qualifying asset shall include any group outsourcing costs incurred prior to 1 January 2016 and where such group outsourcing costs incurred prior to 1 January 2016 related to more than one qualifying asset, those costs shall be apportioned on a just and reasonable basis.

(c)qualifying expenditure on the qualifying asset shall not include any amount incurred prior to 1 January 2016.

(3)A relevant company in relation to all qualifying assets to which this section applies shall have available such records as may reasonably be required for the purposes of determining whether, in relation to such an asset, the qualifying profit has been computed in accordance with this Chapter and section 769L shall apply to these records.

(4) Where, in advance of first making a claim under section 769I, a company has documentation in respect of—

(a)group outsourcing costs in relation to a qualifying asset, or

(b)qualifying expenditure on the qualifying asset,

incurred prior to 1 January 2016 which satisfies the requirements of section 769L(1) then notwithstanding subsections (1) and (2) that company may use amounts calculated with reference to that documentation in applying section 769I.