C1

Part 5 Mineral extraction allowances

Chapter 5 Other kinds of qualifying expenditure

415 Contribution to buildings or works for benefit of employees abroad

1

Subject to subsection (3), expenditure is qualifying expenditure if—

a

it is incurred by a person carrying on a mineral extraction trade outside the United Kingdom and for the purposes of that trade,

b

it is a contribution consisting of a capital sum to the cost of buildings or works to which this section applies, and

c

the buildings or works are likely to be of little or no value, when the source is no longer worked, to the last person working the source.

2

The buildings or works to which this section applies are—

a

buildings to be occupied by persons employed at or in connection with the working of a source outside the United Kingdom;

b

works for the supply of water, gas or electricity wholly or mainly to buildings occupied or to be occupied by persons so employed;

c

works to be used to provide other services or facilities wholly or mainly for the welfare of persons so employed or their dependants.

3

Expenditure is not qualifying expenditure if the person making the contribution—

a

acquires an asset as a result of the expenditure, or

b

is entitled to an allowance for the expenditure under any other provision of the Tax Acts.