Clause 2

Notwithstanding any other provisions of this Act, the Minister may by regulations provide for the circumstances in which the Comptroller may direct that allowances under section 19, 19A, 20, 21, 22 or 23 in respect of any machinery or plant which is leased under a finance lease entered into on or after 1st April 1990 shall not be made to the lessor but to the lessee as though the machinery or plant had been sold by the lessor to the lessee.(2) In determining the income of a lessor from the leasing of any machinery or plant under any finance lease, other than those which have been treated as though they had been sold pursuant to regulations made under subsection (1) —

the Comptroller shall determine —

the manner and extent to which allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted;

the manner and extent to which any loss may be deducted under section 37(2);

the allowances under section 19, 19A, 20, 21, 22 or 23 shall only be available as a deduction against such income and the balance of the allowances shall not be available as a deduction against any other income.(3) For the purposes of this section, “finance lease” means a lease of any machinery or plant (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such machinery or plant to the lessee.”.