Capital Allowances Act 2001 section 85

Claims before 26th November 1996 in respect of acquisition of mineral asset owned by previous trader

Section 85 of Schedule 3 provides a transitional rule disapplying a restriction in section 407(4) for claims made before 26th November 1996 relating to the acquisition of mineral assets previously owned by another trader.

• This is a transitional provision affecting mineral extraction allowances on second-hand mineral assets.
• Section 407(4) imposes a restriction on qualifying expenditure when a mineral asset is acquired from a previous trader.
• That restriction does not apply where the relevant claim was made before 26th November 1996.
• Claims made on or after 26th November 1996 remain subject to the full restriction under section 407(4).