Part 5

Mineral extraction allowances
Chapter 5A

First-year qualifying expenditure

Types of expenditure which may qualify for first year allowances

Expenditure incurred by company for purposes of a ring fence trade
416B
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
(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
section 330(1) of CTA 2010
(supplementary charge in respect of ring fence trades).
Pt. 5 Ch. 5A inserted (with effect as mentioned in s. 63 of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 9
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
Words in s. 416B(5) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 355 (with Sch. 2)
Words in s. 416B(2) inserted (with effect in accordance with s. 92(10) of the amending Act) by Finance Act 2013 (c. 29), s. 92(6)