(1) Part 11 of the Principal Act is amended -

(a) in section 373(2) -

(i) in paragraph (l), by the substitution of "mechanically propelled vehicle;" for "mechanically propelled vehicle.",

(ii) subject to subparagraph (iii), by the insertion of the following after paragraph (l):

"(m) £17,000, where the expenditure was incurred -

(i) in an accounting period ending on or after 1 January 2001, or

(ii) in a basis period for the year of assessment 2000-2001 or for a subsequent year of assessment, where that basis period ends on or after 1 January 2001.",

and

(iii) as respects the year of assessment 2002 and subsequent years of assessment by the substitution in paragraph (m) of "€21,585.55" for "£17,000" (as inserted by subparagraph (ii)),

(b) in subsection (1) of section 376 -

(i) by the insertion before the definition of "qualifying expenditure" of the following:

"'basis period' has, subject to any necessary modification, the meaning assigned to it in section 306;",