Finance Act 2012

PART 6 Mineral leases or agreements

Income tax

43 (1) The following provisions of ITTOIA 2005 (which provide for income tax relief in relation to mineral royalties) are repealed—

(a) section 157 (mineral royalties included as receipts of a trade),

(b) section 319 (mineral royalties included as receipts of a UK property business), and

(c) sections 340 to 343 (mineral royalties receivable in connection with mines, quarries and other concerns).

(2) In consequence of the provision made by sub-paragraph (1)—

(a) in ITTOIA 2005—

(i) in section 337, omit the entry relating to section 340 (and the “and” before that entry), and

(ii) in section 339, omit subsection (3), and

(b) in CRCA 2005, in Schedule 4, omit paragraph 132(3)(a).

(3) The amendments made by this paragraph have effect in relation to mineral royalties which a person is entitled to receive on or after 6 April 2013.

Corporation tax on income

44 (1) The following provisions of CTA 2009 (which provide for corporation tax relief on income in relation to mineral royalties) are repealed—

(a) section 135 (mineral royalties included as receipts of a trade),

(b) section 258 (mineral royalties included as receipts of a UK property business), and

(c) sections 273 to 276 (mineral royalties receivable in connection with mines, quarries and other concerns).

(2) In consequence of the provision made by sub-paragraph (1)(c), in section 272 of CTA 2009, omit subsection (3).

(3) The amendments made by this paragraph have effect in relation to mineral royalties which a company is entitled to receive on or after 1 April 2013.

Chargeable gains

45 (1) Section 201 of TCGA 1992 (mineral leases: royalties) is repealed.

(2) In consequence of the provision made by sub-paragraph (1), in section 203 of TCGA 1992—

(a) in subsection (1), for “sections 201 and 202” substitute “section 202”, and

(b) in the heading, for “sections 201 and 202” substitute “section 202”.

(3) The amendments made by this paragraph have effect—

(a) for the purposes of capital gains tax, in relation to mineral royalties which a person is entitled to receive on or after 6 April 2013, and

(b) for the purposes of corporation tax in respect of chargeable gains, in relation to mineral royalties which a company is entitled to receive on or after 1 April 2013.

46 (1) Section 202 of TCGA 1992 (mineral leases: capital losses) is amended as follows.

(2) In subsection (1)—

(a) after “currency of a mineral lease or agreement” insert “entered into before the relevant date”, and

(b) after “in relation to a mineral lease or agreement” insert “entered into before that date”.

(3) After that subsection insert—

“(1A) For the purposes of this section “the relevant date” means—

(a) for the purposes of capital gains tax, 6 April 2013; and

(b) for the purposes of corporation tax in respect of chargeable gains, 1 April 2013.”

(4) In subsection (3), after “termination of a mineral lease or agreement” insert “entered into before the relevant date”.

47 In section 203 of TCGA 1992 (provisions supplementary to sections 201 and 202), in subsection (1), for “as they apply for the interpretation of Chapter 7 of Part 4 of CTA 2009” substitute “(despite their repeal by paragraph 44(1)(c) of Schedule 39 to the Finance Act 2012)”.