Part 5 Mineral extraction allowances
Chapter 6 Allowances and charges
Cases in which a person is entitled to a balancing allowance
428 Ceasing to work mineral deposits
1
A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if—
a
in that chargeable period he permanently ceases to work particular mineral deposits, and
b
the qualifying expenditure is expenditure incurred—
i
on mineral exploration and access relating solely to those deposits, or
ii
on acquiring a mineral asset consisting of those deposits or part of them.
2
If the person carrying on the mineral extraction trade is entitled to two or more mineral assets which at any time were—
a
comprised in a single mineral asset, or
b
otherwise derived from a single mineral asset,
subsection (1) does not apply until such time as the person permanently ceases to work the deposits comprised in all the mineral assets concerned taken together.
3
For the purposes of subsection (2), if a mineral asset relates to, but does not actually consist of, mineral deposits, the deposits to which the asset relates are to be treated as comprised in the asset.