(1) Part 35D of the Principal Act is amended in section 835AY -

(a) in subsection (1) -

(i) by the substitution of the following definition for the definition of "finance cost element of non-finance lease payments":

"'finance cost element of non-finance lease payments', in respect of a company and an accounting period, means -

(a) subject to paragraph (b), the portion of the deductible lease payment in that accounting period calculated as follows:

P × (A – B) /A

where -

P is the deductible lease payment,

A is the total expected cost of the lease, over the course of the life of the lease on the date the lease was entered into, and

B is the value of the right of use asset recognised in the accounts under international accounting standards, or would be so recognised if accounts were prepared in accordance with international accounting standards, on the date the lease was entered into,