36. Amendment of section 299 (allowances to lessees) of Principal Act.
(1) Section 299 of the Principal Act is amended -
(a) by substituting the following for subsection (1):
"(1) Subject to subsection (3), where machinery or plant is let by means of a finance lease (within the meaning of section 76D) to a person, by whom a trade is carried on, on the terms of that person being bound to maintain the machinery or plant and deliver it over in good condition at the end of the lease, and if the burden of the wear and tear of the machinery or plant in fact falls directly on that person, then, for the purposes of sections 283 and 284, the capital expenditure on the provision of the machinery or plant shall be deemed to have been incurred by that person and not by any other person and the machinery or plant shall be deemed to belong to that person and not to any other person.",
and
(b) by inserting the following after subsection (2):
(a) In this subsection 'lease payments', 'lessee' and 'lessor' have, respectively, the same meanings as in section 80A.
(b) Subsection (1) shall only apply where -
(i) the lessor and lessee jointly elect, or
(ii) where the lessor is not a person within the charge to tax under Schedule D, the lessee elects,