OT26205 - Capital Allowances: Mineral Extraction Allowance

Claims

Pre Pay and File, a claim for MEA by a company is to be made in its return or, more likely in practice, in its capital allowances computation. The full amount of an allowance on each item of qualifying expenditure must be claimed. It is not possible to make a reduced claim. There is no means whereby part/all of the allowances claimed can be disclaimed, as can be done with P&M under Section 56(5) CAA2001. Where expenditure is not claimed, it is carried forward and allowances can be claimed on that amount in the next chargeable period.

Pay & File

Under Pay & File a claim for MEA needs to be made in a return and a claim can be varied by the making of an amended return. There are time limits to be satisfied. The (amended) return must show the specific amount of the allowance to be claimed. The amount need not be the maximum amount due.