Part 5 Mineral extraction allowances
Chapter 6 Allowances and charges
Cases in which a person is entitled to a balancing allowance
426 Pre-trading expenditure
A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if—
a
the expenditure is qualifying expenditure under—
i
section 401(4) (pre-trading exploration expenditure where exploration etc. has ceased before first day of trading), or
ii
section 402 (pre-trading expenditure on plant or machinery), and
b
the first day of trading occurs in that chargeable period.