(1)This section applies if in a tax year a person who is UK resident, or ordinarily UK resident, carries on a UK property business the receipts of which consist of or include mineral royalties—
(a)which the person is entitled to receive under a mineral lease or agreement, and
(b)which are not chargeable to tax under Chapter 8 (rent receivable in connection with a UK section 12(4) concern).
(2)In calculating the profits of the business, the person is treated as—
(a)entitled to receive only half of the total of the mineral royalties arising under the lease or agreement in the tax year, and
(b)making in the tax year only half of the total of the payments made in respect of the management of the property concerned.
(3)Sections 341 to 343 (meaning of “mineral lease or agreement” and “mineral royalties”) apply for the purposes of this section as they apply for the purposes of Chapter 8.