Part 5

Mineral extraction allowances
Chapter 6

Allowances and charges

Cases in which a person is entitled to a balancing allowance

Disposal of asset, etc.
430
1
A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if—
a
the qualifying expenditure was incurred on the provision of any assets, and
b
in that chargeable period any of those assets—
i
is disposed of, or
ii
otherwise permanently ceases to be used by him for the purposes of the mineral extraction trade.
2
A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if any of the following events occurs in that chargeable period in relation to assets representing the qualifying expenditure—
a
the person loses possession of the assets in circumstances where it is reasonable to assume that the loss is permanent;
b
the assets cease to exist as such (as a result of destruction, dismantling or otherwise);
c
the assets begin to be used wholly or partly for purposes other than those of the mineral extraction trade carried on by the person.