(1) Section 310 of the Principal Act is amended -

(a) by the insertion of the following after the definition of "approved scheme":

"'local authority', means the council of a county or the corporation of a county or other borought or the council of an urban district;",

(b) by the substitution of the following for subsection (2) -

"(2) Where a person, for the purposes of a trade carried on or to be carried on by the person, contributes a capital sum to capital expenditure incurred by a local authority on or after 15 February 2001 on the provision of an asset to be used for the purposes of -

(a) an approved scheme, in so far as the scheme relates to the treatment of trade effluents, or

(b) the supply of water under an agreement in writing between the person and the local authority.

then, such allowances, if any, shall be made to the person under section 272 or 284 as would have been made to the person if the capital sum contributed in the chargeable period or its basis period had been expenditure on the provision for the purposes of that trade of a similar asset and that asset had continued at all material times to be in use for the purposes of the trade.",

and

(c) by the insertion of the following after subsection (2):