Capital Allowances Act 2001 section 435

Shares in assets

Section 435 explains how the mineral extraction allowance rules apply when a person owns a share in an asset rather than the whole asset, and when that share is treated as being used for trade purposes.

• The mineral extraction allowance rules apply to a share in an asset in the same way they apply to a part of an asset.
• A share in an asset is treated as being used for trade purposes whenever the underlying asset itself is being used for trade purposes.
• The trade use treatment applies only for so long as the asset continues to be used for the trade — once trade use ceases, the share is no longer regarded as used for the trade either.
• This ensures that co-owners of mineral extraction assets can each claim allowances on their respective shares, mirroring the treatment available for parts of assets.