Capital Allowances Act 2001 section 475

Unrelieved qualifying expenditure

Section 475 explains how unrelieved qualifying expenditure is calculated and carried forward from one chargeable period to the next within a mineral extraction allowances pool.

• Unrelieved qualifying expenditure arises when a person's available qualifying expenditure (AQE) exceeds their total disposal receipts (TDR) for a chargeable period
• The amount carried forward is the excess of AQE over TDR, reduced by any writing-down allowance claimed for that period
• If no writing-down allowance is claimed, the full excess of AQE over TDR is carried forward
• No unrelieved qualifying expenditure may be carried forward from the final chargeable period (i.e. when the trade is permanently discontinued)