Capital Allowances Act 2001 section 416D

First-year allowances

Section 416D establishes the entitlement to first-year allowances for qualifying mineral extraction expenditure and sets out how those allowances are calculated and claimed.

• A person who incurs first-year qualifying expenditure in a chargeable period is entitled to claim a first-year allowance for that period.
• The allowance is 100% of qualifying expenditure incurred wholly for the purposes of a ring fence trade (as defined in section 416B).
• The claimant may choose to claim the allowance on the whole or only part of the qualifying expenditure.
• Claims that are artificially inflated may be restricted under section 416E.