Part 5 Mineral extraction allowances
Chapter 5 Other kinds of qualifying expenditure
416ZCF1Site restoration services supplied by connected person
1
Where—
a
a person (“R”) who is carrying on, or has ceased to carry on, a ring fence trade enters into an arrangement,
b
under the arrangement, a person (“S”) who is connected with R provides a service to R in connection with work on the restoration of a relevant site, and
c
(in the absence of this section) all or part of the consideration for the service would be qualifying expenditure of R under section 416ZA,
the amount of the expenditure which is qualifying expenditure is restricted under section 416ZD(1).
2
Subsection (1)(b) may be satisfied whether the service is provided to R directly or indirectly; and in particular it does not matter—
a
whether R and S are parties to the same contract, or
b
whether payments are made by R directly to S.
3
Subsections (4) and (5) apply for the purposes of this section and sections 416ZD and 416ZE.
4
“Relevant site” has the meaning given by section 416ZA(8).
5
References to providing a service include—
a
letting a ship on charter or any other asset on hire, and
b
providing goods which are to be used up in the course of providing a service.