This section applies if—
expenditure is incurred by company A or company B (see section 195A) on a licence disposed of by it under a licence-consideration swap or mixed-consideration swap,
the expenditure is incurred before the disposal,
the expenditure falls within section 38(1)(b), and
the expenditure is reimbursed or effectively reimbursed (whether by way of adjustment of the non-licence consideration (if any) or otherwise) by the company ("the other company") to whom the disposal is made (whether before, on or after the date of the disposal).
The expenditure is to be treated for the purposes of this Act as expenditure —
incurred by the other company on the licence immediately after the disposal, and
which falls within section 38(1)(b).