OT26240 - Capital Allowances: Mineral Extraction Allowance

Expenditure on Buying into a Field

This is an area in which many MEA claims are likely to be made. In whatever manner relief has been given to the previous owner(s), MEA may be due to the purchaser on such part of the price which does not relate to plant or machinery or buildings. This part of the price is likely to be the cost of a mineral asset.

Note that MEA is not due where a previous trader has received a New Brunswick deduction for intangible drilling costs. See OT26237.