Part 5

Mineral extraction allowances
Chapter 1

Introduction

Expenditure excluded from being qualifying expenditure
399
1
Expenditure on the provision of plant or machinery is not qualifying expenditure except as provided by section 402 (pre-trading expenditure on plant or machinery).
1A
Expenditure incurred by a person for the purposes of a mineral extraction trade is not qualifying expenditure if—
a
when the expenditure is incurred, the person is carrying on the trade but the trade is not at that time a mineral extraction trade, or
b
the person has not begun to carry on the trade when the expenditure is incurred and, when the person begins to carry on the trade, the trade is not a mineral extraction trade.
1B
Section 577(2) (references to commencement
etc
of a trade) does not apply to subsection (1A).
2
Expenditure on works constructed wholly or mainly for subjecting the raw product of a source to any process is not qualifying expenditure, unless the process is designed for preparing the raw product for use as such.
3
Expenditure on buildings or structures provided for occupation by, or for the welfare of, workers is not qualifying expenditure except as provided by section 415.
4
Expenditure on a building is not qualifying expenditure if the whole of the building was constructed for use as an office.
5
Subsection (6) applies if part of a building or structure has been constructed for use as an office.
6
The expenditure on the office part is not qualifying expenditure if it was more than 10% of the capital expenditure incurred on the construction of the whole.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
S. 399(1A)(1B) inserted (with effect in accordance with s. 67(8) of the amending Act) by Finance Act 2014 (c. 26), s. 67(3)