Capital Allowances Act 1990 (repealed)

115 Expenditure partly attributable to mineral exploration and access. U.K.

(1) This section applies where, in a case falling within section 113(1)—

(a) the purchased asset is a mineral asset; and

(b) part of the value of that asset is attributable to expenditure incurred by the previous trader on mineral exploration and access.

(2) Where this section applies—

(a) such part of the buyer’s expenditure as it is just and reasonable to attribute to the part of the value referred to in subsection (1)(b) above (being no greater than the amount of the previous trader’s expenditure on mineral exploration and access which is properly attributable to that part of the value) shall be treated for the purposes of Chapters I and II of this Part as expenditure on mineral exploration and access and the remainder shall be treated for those purposes as expenditure on the acquisition of a mineral asset; and

(b) if under Part VII allowances were made to the previous trader in taxing his trade, the existence of these allowances shall not affect the question whether any of his expenditure on the purchased asset was qualifying expenditure.

[F1 (2A) Expenditure incurred by the previous trader which is or has been deducted in computing, for the purposes of tax, the profits or gains of a trade carried on by him shall not be treated as expenditure on mineral exploration and access for the purposes of subsection (1)(b).]

(3) In this section “the previous trader” and “the purchased asset” have the same meanings as in section 113 and “the buyer’s expenditure” has the same meaning as in section 114.

Textual Amendments

F1 S. 115(2A) inserted (with application in accordance with s. 66(5) of the amending Act) by Finance Act 1997 (c. 16), s. 66(2)