Capital Allowances Act 2001 section 399

Expenditure excluded from being qualifying expenditure

Section 399 identifies the types of expenditure that cannot qualify for mineral extraction allowances, even if they relate to a mineral extraction trade.

• Expenditure on plant or machinery is generally excluded from qualifying expenditure for mineral extraction allowances, with a limited exception for certain pre-trading expenditure on plant or machinery
• Expenditure connected to a trade that is not yet, or not currently, a mineral extraction trade does not qualify, even if the spending is intended for mineral extraction purposes
• Expenditure on processing works for the raw product of a source is excluded, unless the process simply prepares the raw product for use in its natural state
• Expenditure on office buildings is excluded entirely if the whole building is an office, and the office portion of a mixed-use building is excluded if it accounts for more than 10% of the total construction cost