Capital Allowances Act 2001 section 393B

Meaning of "qualifying expenditure"

Section 393B defines what counts as "qualifying expenditure" for the purposes of capital allowances on mineral extraction.

• Qualifying expenditure is capital expenditure incurred on mineral extraction that falls within the specific categories set out in the mineral extraction allowances provisions of the Capital Allowances Act 2001.
• The definition ensures that only expenditure of a capital nature, rather than revenue expenditure, can attract mineral extraction allowances.
• The section was amended by Finance Act 2012 (Schedule 39, paragraph 37) to update the definition in line with wider reforms to the capital allowances regime.
• The definition acts as a gateway provision — expenditure must meet this test before any mineral extraction allowance can be claimed against it.