Capital Allowances Act 2001 section 419

Unrelieved qualifying expenditure

Section 419 defines "unrelieved qualifying expenditure" for mineral extraction allowances, explaining how it is calculated both in the period the expenditure is incurred and in later periods, including special rules for first-year qualifying expenditure.

• Unrelieved qualifying expenditure in the period of incurrence is the full amount of qualifying expenditure, unless it is first-year qualifying expenditure, in which case it is nil.
• In later periods, unrelieved qualifying expenditure is the original expenditure less the total of all allowances already given and all disposal receipts brought into account for earlier periods.
• Where first-year qualifying expenditure gives rise to a disposal receipt in the same period it was incurred, the unrelieved balance (the expenditure minus any first-year allowance claimed) is treated as unrelieved qualifying expenditure, but only for determining any balancing allowance or balancing charge for that period.
• The "unrelieved balance" of first-year qualifying expenditure is the amount remaining after deducting any first-year allowance given in respect of that expenditure.