Income Tax Act 2007 section 93

Mineral extraction trade and carry back of balancing allowances

Section 93 establishes the ordering rule when both terminal trade loss relief and a carry-back of balancing allowances are claimed on the permanent cessation of a mineral extraction trade.

• The section applies when a person permanently ceases a mineral extraction trade and claims both terminal trade loss relief and a balancing allowance carry-back under section 355 of CAA 2001.
• Terminal trade loss relief must be given priority and applied before any relief for the balancing allowance carry-back.
• When calculating the terminal trade loss relief, the balancing allowance itself is excluded from the computation.
• A mineral extraction trade is defined by reference to Part 5 of CAA 2001 (section 394), covering trades involving the working of mines, oil wells, quarries and similar undertakings.