Capital Allowances Act 2001 section 394

Mineral extraction allowances

Section 394 establishes the availability of mineral extraction allowances and defines the key terms used throughout this part of the Act.

• Mineral extraction allowances are available to anyone carrying on a mineral extraction trade who incurs qualifying expenditure
• A mineral extraction trade is one that includes working a source of mineral deposits, but only to the extent that profits are (or would be) chargeable to tax
• Mineral deposits means any natural deposits capable of being lifted or extracted from the earth (including geothermal energy), and references to mineral deposits are limited to those of a wasting nature
• Where a company or partnership is treated as carrying on two separate trades under the Northern Ireland rate activity rules, both trades qualify as mineral extraction trades if they would qualify when considered together