Capital Allowances Act 2001 section 403

Qualifying expenditure on acquiring a mineral asset

Section 403 sets out the conditions under which expenditure on acquiring a mineral asset qualifies for mineral extraction allowances.

• Expenditure on acquiring a mineral asset qualifies for allowances only if it is capital expenditure incurred for the purposes of a mineral extraction trade.
• The qualifying amount may be reduced where the undeveloped market value of land is excluded (section 404) or where premium relief has previously been allowed (section 406).
• Expenditure on restoring a relevant site (as defined in sections 416 and 416ZA) does not count as expenditure on acquiring a mineral asset for these purposes.
• The person acquiring the mineral asset is referred to throughout this chapter as "the buyer".