OT26270 - Capital Allowances: Mineral Extraction Allowance

Planning Permission

The cost of a successful planning application is part of the cost of the acquisition of the licence and therefore relievable at 10%. The cost of an unsuccessful application is not part of the cost of the acquisition of a mineral asset within CAA2001/s395(1)(b). CAA2001/s396(2)/(3) allows this expenditure to be relieved at 25%. The sub section specifically allows the cost of pursuing an appeal against planning refusal.

By analogy, certain other unsuccessful costs are allowed at 25%, e.g. the costs of unsuccessful applications for licences, of acquisitions including farm-ins and exchanges not proceeded with.