21(1)In section 57(6) of the [1985 c. 54.] Finance Act 1985 (election for certain machinery or plant to be treated as short-life assets)—
(a)for the words “the short-life asset” there shall be substituted the words “a short-life asset provided for leasing”, and
(b)in paragraph (b)—
(i)after the word “expenditure”, where it first appears, there shall be inserted the words “in respect of the notional trade”,
(ii)for the words following “1980)” there shall be substituted the words “be, or be added to, the trader’s qualifying expenditure for that chargeable period.”
(2)The amendment made by sub-paragraph (1)(b)(i) above is to section 57(6) of the Finance Act 1985 as it has effect as amended by section 57(6) of the [1986 c. 41.] Finance Act 1986 and as it has effect by virtue of section 57(7) of that Act and the amendment made by sub-paragraph (1)(b)(ii) above is to section 57(6) of the Finance Act 1985 as it has effect by virtue of section 57(7) of the Finance Act 1986.
(3)This paragraph shall have effect in relation to any chargeable period or its basis period ending on or after the day on which this Act is passed.
22(1)In Schedule 15 to the Finance Act 1985 (machinery and plant excluded from treatment as short-life assets), for paragraph 8 (leased assets) there shall be substituted—
“8. Machinery or plant provided for leasing, except—
(a)machinery or plant which it appears will be used in the requisite period (within the meaning of section 64 of the Finance Act 1980) for a qualifying purpose (within the meaning of that section) and will not at any time in that period be used for any other purpose,
(b)vehicles of the kind mentioned in subsection (12) of that section.”
(2)In paragraph 9 of that Schedule (leased assets) for the words from “1980” to the end there shall be substituted the word “applies”.
(3)This paragraph shall have effect in relation to expenditure incurred on or after the day on which this Act is passed.