Corporation Tax Act 2009 section 258

Relief in respect of mineral royalties

Section 258 provides a relief that reduces the amount of mineral royalties charged to corporation tax on income by half, with the other half being subject to corporation tax on chargeable gains instead.

• Only half of the net profits from mineral royalties are charged to corporation tax on income
• The other half is charged to corporation tax on chargeable gains under section 201 of the Taxation of Chargeable Gains Act
• This section applies only to mineral royalties that are not already taxed under the rules for mines, quarries and similar concerns in Chapter 7 of Part 4
• In practice, most mineral royalties will be taxed under Chapter 7 of Part 4, so this relief applies only in limited circumstances