Part 5

Mineral extraction allowances
Chapter 6

Allowances and charges

Writing-down and balancing allowances and balancing charges

Determination of entitlement or liability
417
1
Whether a person who has incurred qualifying expenditure is entitled to a writing-down allowance or a balancing allowance, or liable to a balancing charge, for a chargeable period depends on—
a
how much of the expenditure is unrelieved qualifying expenditure for that period (“UQE”), and
b
the total of any disposal receipts to be brought into account for that period (“TDR”) by reference to the expenditure.
2
If UQE exceeds TDR, the person is entitled to a writing-down allowance or a balancing allowance for the period.
3
If TDR exceeds UQE, the person is liable to a balancing charge for the period.
4
The entitlement under subsection (2) is to a writing-down allowance except in cases for which sections 426 to 431 provide for the entitlement to be to a balancing allowance.
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