Part 5Mineral extraction allowances
Chapter 6Allowances and charges
Writing-down and balancing allowances and balancing charges
418Amount of allowances and charges
1
The amount of the writing-down allowance to which a person is entitled for any chargeable period in respect of qualifying expenditure is—
a
in the case of qualifying expenditure on the acquisition of a mineral asset, 10% of the amount by which UQE exceeds TDR;
b
in the case of other qualifying expenditure, 25% of the amount by which UQE exceeds TDR.
2
If the chargeable period is more or less than a year, the amount of the writing-down allowance is proportionately increased or reduced.
3
If the mineral extraction trade has been carried on for part only of the chargeable period, the amount of the writing-down allowance is proportionately reduced.
4
The amount of the balancing charge to which a person is liable for a chargeable period in respect of qualifying expenditure is—
a
the amount by which TDR exceeds UQE, or
b
if less, the allowances for earlier chargeable periods in respect of the expenditure less the total of any balancing charges for those periods in respect of the expenditure.
5
The amount of the balancing allowance to which a person is entitled for a chargeable period in respect of qualifying expenditure is the amount by which UQE exceeds TDR.
6
A person claiming a writing-down allowance or a balancing allowance may require the allowance to be reduced to a specified amount.