Capital Allowances Act 2001 section 393H

Initial allowances

Section 393H provides for initial allowances on qualifying expenditure on mineral extraction, setting out when such allowances are available and how they are calculated.

• An initial allowance of 10% is available on qualifying mineral extraction expenditure incurred in the chargeable period in which the asset is first brought into use.
• The initial allowance is calculated as 10% of the qualifying expenditure incurred on mineral extraction.
• The allowance is only available for the chargeable period in which the expenditure is first incurred or the asset is first used for mineral extraction purposes.
• The initial allowance was amended by Finance Act 2012, Schedule 39, paragraph 37.