Part 4Property income

Chapter 7Rent receivable in connection with a UK section 39(4) concern

Mineral royalties

274Meaning of “mineral lease or agreement” and “mineral royalties”

1

In this Chapter “mineral lease or agreement” means—

a

a lease, profit à prendre, licence or other agreement conferring a right to win and work minerals in the United Kingdom,

b

a contract for the sale, or a conveyance, of minerals in or under land in the United Kingdom, and

c

a grant of a right under section 1 of the Mines (Working Facilities and Support) Act 1966 (c. 4) other than an ancillary right (within the meaning of that Act).

2

In this Chapter “mineral royalties” means so much of any rent receivable under a mineral lease or agreement as relates to the winning and working of minerals.

3

For the purposes of this section and section 276 “minerals” means all minerals and substances in or under land which are ordinarily worked for removal—

a

by underground working, or

b

by surface working,

but excluding water, peat, top-soil and vegetation.