CA50430 - MEA: Allowances and charges:
Disposal receipts: non trade use
Where a person carrying on a trade of mineral extraction:
- acquires a mineral asset which at any
later time begins to be used by him or any other person in a way
that constitutes development,
- but it is neither ‘existing
permitted development’ nor development for the purpose of
that trade,
- then the asset is treated as having
permanently ceased, immediately before that time, to be used by him
for the purposes of mineral extraction.
Thus the disposal value of the asset will need to be brought
into account, for the chargeable period in which the use begins
(CAA01/S422).
‘Existing permitted expenditure’ is:
- development lawfully completed or
commenced before acquisition of the asset,
- development within the terms of a
development order.
