Restrictions on qualifying expenditure in case of UK oil licence and certain other assets inapplicable for expenditure pre-16th July 1985
87(1)The sections listed in sub-paragraph (2) do not apply if—
(a)asset X is a mineral asset situated in the United Kingdom, and
(b)the capital expenditure incurred by the buyer consists of the payment of sums under a contract entered into by him before 16th July 1985.
(2)The sections are—
(a)section 407 (acquisition of mineral asset owned by previous trader),
(b)section 410 (UK oil licence: qualifying expenditure limited by reference to original licence payment), and
(c)section 411 (assets generally: qualifying expenditure limited by reference to previous trader’s unrelieved qualifying expenditure).
(3)Sections 407 and 411 apply, in relation to a case where asset X is a mineral asset situated in the United Kingdom, as if the references to an earlier owner of the asset did not include a person who has not owned the asset at any time after 31st March 1986.
(4)In the case of a mineral asset which consists of or includes an interest in or right over mineral deposits or land, the asset is not to be regarded for the purposes of this paragraph as situated in the United Kingdom unless the deposits or land are or is so situated.
(5)Expressions used in this paragraph and Chapter 4 of Part 5 have the same meaning in this paragraph as they have in that Chapter.