Income Tax (Trading and Other Income) Act 2005 section 342

Extended meaning of "mineral royalties" etc. in Northern Ireland

Section 342 modifies the definition of "mineral royalties" to accommodate the different rules governing mineral rights ownership in Northern Ireland.

  • In Northern Ireland, the right to win and work most minerals is held by the Department of Enterprise, Trade and Investment (DETI), not by private landowners.
  • DETI grants licences to operators to work those minerals on its behalf.
  • Former owners of the mineral rights receive compensatory payments from DETI under various Acts of the Northern Ireland Parliament.
  • This section treats those compensatory payments as mineral royalties for income tax purposes, bringing them within the same tax rules that apply to mineral royalties elsewhere in the UK.

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