OT26203 - Capital Allowances: Mineral Extraction Allowance

Interaction of MEA and Other Capital Allowances

For chargeable periods ended before 27 July 1989, it was provided that SRA should be given in priority to other capital allowances. Therefore, if SRA was due but not claimed, no MEA could be given. Also, where MEA could be claimed, companies could not claim IBA.

For chargeable periods ending after 26 July 1989, Section 7 CAA2001 allows companies to choose the relief where more than one of the capital allowances is claimable. This is particularly relevant for oil companies where either MEA or SRA may be claimable.