Finance Act 1986

9 (1) Allowances shall be made in accordance with this paragraph to a person who carries on a trade of mineral extraction in respect of qualifying expenditure incurred by him for the purposes of that trade.

(2) Subject to sub-paragraph (4) below, for the chargeable period related to the incurring of the expenditure, there shall be made to the person incurring it an allowance equal to the appropriate percentage of the excess (if any) of that expenditure over any disposal receipts which he is required to bring into account by reference to that expenditure for that chargeable period.

(3) Subject to sub-paragraph (4) below, for each of the chargeable periods following that related to the incurring of the expenditure, there shall be made to the person incurring it an allowance equal to the appropriate percentage of the excess (if any) of that expenditure over the aggregate of—

(a) the allowances made in respect of the expenditure for earlier chargeable periods by virtue of sub-paragraph (2) above and this sub-paragraph; and

(b) any disposal receipts which he is or was required to bring into account by reference to that expenditure for the chargeable period in question and any earlier chargeable periods.

(4) For a chargeable period for which, in accordance with paragraph 12 below, a balancing allowance falls to be made to any person in respect of any expenditure, sub-paragraph (2), or, as the case may be, sub-paragraph (3) above shall have effect with the omission of the words "the appropriate percentage of.

(5) Subject to sub-paragraph (6) below, in relation to expenditure which is qualifying expenditure falling within paragraph 4, paragraph 7 or paragraph 8 above, other than expenditure falling within paragraph 4(1)(b), the appropriate percentage is 25 and, in relation to all other qualifying expenditure, the appropriate percentage is 10.

(6) If a chargeable period or its basis period is part only of a year or if the period is a year of assessment but the trade has been carried on for part only of it, the percentage appropriate under sub-paragraph (5) above shall be correspondingly reduced.