Capital Allowances Act 2001 section 450

Giving effect to allowances and charges

Section 450 explains how mineral extraction allowances and charges are treated in computing trading profits for a chargeable period.

• Allowances and charges under the mineral extraction provisions are given effect through the trading profit calculation for the relevant chargeable period.
• An allowance is treated as a deductible trading expense, reducing the taxable profit of the trade.
• A charge is treated as a trading receipt, increasing the taxable profit of the trade.
• Special rules apply where the trade involves Northern Ireland rate activities, as set out in section 6E of the Act.