Capital Allowances Act 2001 Schedule 3 paragraph 25

Pre-trading expenditure on mineral exploration and access

Schedule 3 paragraph 25 restricts the scope of section 161 by excluding certain historical pre-trading expenditure on mineral exploration and access from its provisions.

• Section 161 normally allows pre-trading expenditure on mineral exploration and access to be treated as if incurred on the first day of trading
• This transitional rule disapplies section 161 where the expenditure was incurred before 1 April 1986
• The disapplication only applies if the mineral exploration and access at the relevant source had also ceased before trading commenced
• Both conditions must be met — pre-1 April 1986 expenditure and cessation of exploration before the trade began