The Principal Act is amended -

(a) by the substitution of the following section for section 76D:

"76D. Computation of income and expenses from leases

(1) In this section and sections 299 and 403 -

‘finance lease’ means a lease which, under generally accepted accounting practice, falls to be treated as a finance lease;

‘lease’ means a finance lease or an operating lease;

‘leased asset’ in relation to a lease, means an asset that is the subject of the lease;

‘lease payments’, in relation to a lease, means amounts payable under the lease to the lessor in relation to the leased asset, and includes -

(a) any residual amount to be paid to the lessor at or after the end of the lease term and guaranteed by the lessee or by a person connected with the lessee or under the terms of any scheme or arrangement between the lessee and any other person, and

(b) any amount to be refunded by the lessor at or after the end of the lease term and guaranteed by the lessor or by a person connected with the lessor or under the terms of any scheme or arrangement between the lessor and any other person;

‘lease term’, in respect of a company, has the meaning given to it by the generally accepted accounting practice in accordance with which that company prepares its accounts;