(1)Subject to subsections (2) and (3) below, expenditure incurred by a person carrying on a trade of mineral extraction outside the United Kingdom and consisting of contributions of capital sums to the cost of—
(a)buildings to be occupied by persons employed at or in connection with the working of a source outside the United Kingdom, or
(b)works for the supply of water, gas or electricity wholly or mainly to buildings occupied or to be occupied by persons so employed, or
(c)works to be used in providing other services or facilities wholly or mainly for the welfare of persons so employed or their dependants,
is by virtue of this section qualifying expenditure.
(2)Expenditure incurred by any person as mentioned in subsection (1) above is not qualifying expenditure unless—
(a)it is incurred for the purposes of his trade of mineral extraction; and
(b)when the source in question is no longer worked, the buildings or works concerned are likely to be of little or no value to the person working the source immediately before that time.
(3)Subsection (1) does not apply—
(a)to expenditure resulting in the acquisition of an asset by the person incurring the expenditure; nor
(b)to expenditure in respect of which an allowance may be made under any provision of the Tax Acts (other than this Part).