Corporation Tax Act 2009 section 274

Meaning of "mineral lease or agreement" and "mineral royalties"

Section 274 defines the key terms "mineral lease or agreement" and "mineral royalties" used in connection with the treatment of mineral royalties under the property income rules.

• A "mineral lease or agreement" means any lease, licence or agreement conferring a right to win and work minerals in the United Kingdom
• "Mineral royalties" are rent or royalties received under such a mineral lease or agreement in respect of the extraction of minerals
• The definition of "lease" used elsewhere in the property income rules also covers mineral leases, so the two definitions work consistently together
• The rules do not apply to any rent that was receivable before 6 April 1970, with this historical limitation preserved through transitional provisions