Capital Allowances Act 2001 section 416ZC

Site restoration services supplied by connected person

Section 416ZC restricts the amount of qualifying expenditure a person carrying on (or who has ceased to carry on) a ring fence trade can claim for mineral extraction allowances where site restoration services are provided by a connected person.

• Where a connected person provides site restoration services to someone in a ring fence trade, the qualifying expenditure that can be claimed is restricted
• The restriction applies whether the service is provided directly or indirectly — it does not matter whether the parties share the same contract or whether payments flow directly between them
• Providing a service includes chartering a ship, hiring out any other asset, and supplying goods that are consumed in the course of delivering the service
• A "relevant site" takes its meaning from the wider site restoration provisions applicable to ring fence trades