Capital Allowances Act 2001 section 409

Acquisition of other assets from non-traders

Section 409 caps the qualifying expenditure when a mineral extraction trader buys assets from a seller who has not carried on a mineral extraction trade, where those assets represent the seller's spending on mineral exploration and access.

• Applies when a mineral extraction trader buys assets from someone who has never carried on a mineral extraction trade
• The assets acquired must represent expenditure the seller incurred on mineral exploration and access
• The buyer's qualifying expenditure is capped at the amount the seller originally spent on mineral exploration and access represented by those assets
• This section does not apply where section 408 (acquisition of an oil licence from a non-trader) already covers the transaction