Explanatory Notes

Capital Allowances Act 2001

2001 CHAPTER 2

22nd March 2001

Commentary on Sections

Glossary

Part 5: Mineral extraction allowances
Chapter 2: Qualifying expenditure on mineral exploration and access
Section 401: Pre-trading exploration expenditure

1385.This section is based on section 107 of CAA 1990. It deals with mineral exploration and access expenditure, other than on plant or machinery, incurred before a person starts a mineral extraction trade.

1386.The section limits the qualifying expenditure if there are relevant receipts before the trade starts. It also limits qualifying expenditure if mineral exploration and access ceases at the source concerned before the trade starts.