Part 5 Mineral extraction allowances
F1Chapter 5AFirst-year qualifying expenditure
Types of expenditure which may qualify for first year allowances
416B Expenditure incurred by company for purposes of a ring fence trade
(1)
Expenditure is first-year qualifying expenditure if—
(a)
it is incurred on or after 17th April 2002,
(b)
it is incurred by a company,
(c)
it is incurred wholly for the purposes of a ring fence trade, and
(d)
it is not excluded by—
(i)
subsection (2) (acquisition of mineral asset), or
(ii)
subsection (3) (acquisition of asset representing expenditure of connected company).
(2)
Expenditure is not first-year qualifying expenditure under this section if it is expenditure on acquiring a mineral asset F2(within the meaning of section 403).
(3)
Expenditure is not first-year qualifying expenditure under this section if it is expenditure incurred by a company on the acquisition of an asset representing expenditure incurred by a company connected with that company.
(4)
To the extent that references in this section to an asset representing expenditure incurred by a company include a reference to an asset representing expenditure on mineral exploration and access, they also include a reference to any results obtained from any search, exploration or inquiry on which any such expenditure was incurred.
(5)
In this section “ ring fence trade ” means a ring fence trade in respect of which tax is chargeable under F3section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).