17 Mining structures etc: balancing allowances carried back to earlier chargeable periods.U.K.
(1)If, in the case of a trade which consists of or includes the working of a mine, oil well or other source of mineral deposits—
(a)a balancing allowance falls to be made under this Part for the last chargeable period in which the trade is carried on, and
(b)the event giving rise to the allowance is the mine, oil well or other source ceasing to be worked or the coming to an end of a foreign concession, and
(c)the allowance is in respect of expenditure on a building or structure which was constructed for occupation by, or for the welfare of, persons employed at, or in connection with the working of, the mine, oil well or other source, and
(d)full effect cannot be given to the allowance because of an insufficiency of profits or gains for that chargeable period,
the person entitled to the allowance may claim that the balance of the allowance shall be given for the last preceding chargeable period, and so on for other preceding chargeable periods, so however that allowances shall not be given by virtue of this subsection for periods together amounting to more than five years (inclusive of any period for which an allowance might be made but cannot be given effect for want of profits or gains) otherwise than by giving a proportionately reduced allowance for a chargeable period of which part is required to make up the five years.
(2)In the case of a company no allowance shall be given by virtue of this section so as to create or augment a loss in any accounting period; and, where on a company ceasing to carry on a trade a claim is made both under this section and under [F1section 393A(1) of the principal Act (relief for company trading losses)] the allowance for which the claim is made shall be disregarded for the purposes of the claim under that section, but effect shall be given to the claim under that section in priority to the claim under this section.
(3)Section 42 of the M1Taxes Management Act 1970 shall apply to any claim under this section.
Textual Amendments
F1Words in s. 17(2) substituted (retrospectively in relation to losses incurred in accounting periods ending on or after 01.04.1991) by Finance Act 1991 (c. 31), s. 73(3)-(5), Sch. 15 para.28.
Marginal Citations