Capital Allowances Act 2001 section 427

Giving up exploration, search or inquiry

Section 427 provides for a balancing allowance where a person abandons mineral exploration or search activities without ever proceeding to work the related mineral deposits.

• Applies specifically to qualifying expenditure on mineral exploration and access
• The person must have given up the exploration, search or inquiry in the chargeable period concerned
• The person must not carry on (then or later) a mineral extraction trade involving the mineral deposits to which the expenditure related
• Where all conditions are met, the person receives a balancing allowance for the full amount of remaining qualifying expenditure