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).

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