Part 6: Mineral leases or agreements
Income tax
68.Paragraph 43 repeals sections 157, 319 and 340 to 343 of ITTOIA. Those sections treat half of the mineral royalties that a person may receive under a mineral royalty agreement or lease as subject to income tax. The paragraph also makes consequential amendments to ITTOIA and the Commissioners for Revenue and Customs Act 2005. These changes have effect for mineral royalties receivable on or after 6 April 2013.
Corporation tax on income
69.Paragraph 44 repeals sections 135, 258 and 273 to 276 of CTA 2009. Those sections treat half of the mineral royalties that a person may receive under a mineral royalty agreement or lease as subject to corporation tax as income. The paragraph also makes a consequential amendment to CTA 2009. These changes have effect for mineral royalties receivable on or after 1 April 2013.
Chargeable gains
70.Paragraph 45 repeals section 201 of TCGA 1992. Section 201 treats half of the mineral royalties that a person receives as a chargeable gain. The paragraph also makes various consequential amendments to TCGA. These changes have effect for mineral royalties which a person is entitled to receive on or after 1 April 2013 for the purposes of corporation tax on chargeable gains, and on or after 6 April 2013 for the purposes of capital gains tax (CGT).
71.Paragraph 46 amends section 202 of TCGA to limit the loss relief that the section provides in respect of mineral royalties leases or agreements to cases where the lease or agreement is entered into before 1 April 2013, for corporation tax purposes, or 6 April 2013, for CGT purposes.
72.Paragraph 47 makes a consequential amendment to section 203 of TCGA, which supplements sections 201 and 202.
