OT26202 - Capital Allowances: Mineral Extraction Allowance

Allowances Generally

Balancing and writing down allowances are given on qualifying expenditure incurred for the purposes of a mineral extraction trade by the person carrying on that trade (CAA2001/394(1)). Allowances are made in taxing the trade of mineral extraction (CAA2001/s432). Certain expenditure incurred before commencement of trading is treated as incurred on the date of commencement (CAA2001/s434(1)). In this chapter, references to trade, trading, trader etc. are to a trader resident in the UK carrying on a mineral extraction trade.