Capital Allowances Act 2001 section 414

Expenditure on works likely to become valueless

Section 414 sets out when capital expenditure on constructing works connected with mineral extraction qualifies for capital allowances because the works are likely to become worthless once the mineral source is exhausted or a foreign concession expires.

• Capital expenditure on constructing works connected with working a mineral source qualifies if the works are likely to have little or no value once the source is no longer worked
• Where a mineral source is worked under a foreign concession, the expenditure qualifies if the works are likely to become valueless when that concession ends
• Expenditure on acquiring the site itself, or any rights in or over the site, does not count as qualifying expenditure
• A foreign concession is defined as a right or privilege granted by a government, municipality or other authority in a territory outside the United Kingdom