118 Assets formerly owned by non-traders.U.K.
[F1(1)]Where a person incurs expenditure on mineral exploration and access and, without having carried on a trade of mineral extraction, he sells any assets representing that expenditure, then, if the person who acquires the assets carries on such a trade, only so much of the price paid by him for the assets as does not exceed the amount of the seller’s expenditure which is represented by the assets shall be qualifying expenditure for the purposes of this Part.
[F2(2)Section 138A shall have effect for the purposes of subsection (1) above in relation to expenditure on mineral exploration and access as it has effect for the purposes of section 138 in relation to allowable [F3research and development] expenditure of a capital nature.]
Textual Amendments
F1S. 118 renumbered as s. 118(1) (with application in accordance with s. 180(4) of the amending Act) by Finance Act 1996 (c. 8), s. 180(3)
F2S. 118(2) inserted (with application in accordance with s. 180(4) of the amending Act) by Finance Act 1996 (c. 8), s. 180(3)
F3Words in s. 118(2) substituted (with effect in accordance with s. 68(1)(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 19 paras. 7, 8