Part 5 Mineral extraction allowances
Chapter 2 Qualifying expenditure on mineral exploration and access
400 Qualifying expenditure on mineral exploration and access
1
Expenditure on mineral exploration and access is qualifying expenditure if—
a
it is capital expenditure, and
b
it is incurred for the purposes of a mineral extraction trade.
2
Expenditure on mineral exploration and access incurred by a person in connection with a mineral extraction trade which that person carries on then or subsequently is to be treated as incurred for the purposes of that trade.
3
But pre-trading expenditure on mineral exploration and access is qualifying expenditure only to the extent provided by—
section 401 (pre-trading exploration expenditure), or
section 402 (pre-trading expenditure on plant or machinery).
4
Any pre-trading expenditure that is qualifying expenditure under either of those sections is to be treated as incurred on the first day of trading.
5
In this Chapter—
a
“pre-trading expenditure” means capital expenditure incurred before the day on which a person begins to carry on a mineral extraction trade, and
b
“the first day of trading”, in relation to a person’s pre-trading expenditure, means the day on which that person begins to carry on the mineral extraction trade.