Part 5 Mineral extraction allowances

Chapter 3 Qualifying expenditure on acquiring a mineral asset

403 Qualifying expenditure on acquiring a mineral asset

(1)

Expenditure on acquiring a mineral asset is qualifying expenditure if—

(a)

it is capital expenditure, and

(b)

it is incurred for the purposes of a mineral extraction trade.

(2)

Subsection (1) is subject to—

  • section 404 (exclusion of undeveloped market value of land), and

  • section 406 (reduction where premium relief previously allowed).

F1(2A)

For the purposes of this section the reference to expenditure on acquiring a mineral asset does not include expenditure incurred on the restoration of a relevant site (within the meaning of section 416 or 416ZA).

(3)

In this Chapter “the buyer”, in relation to the acquisition of a mineral asset, means the person acquiring it.