Part 5

Mineral extraction allowances
Chapter 6

Allowances and charges

Cases in which a person is entitled to a balancing allowance

Pre-trading expenditure
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A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if—
a
the expenditure is qualifying expenditure under—
i
section 401(4)
(pre-trading exploration expenditure where exploration etc. has ceased before first day of trading), or
ii
section 402 (pre-trading expenditure on plant or machinery), and
b
the first day of trading occurs in that chargeable period.
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