C1Part 3Trading income
Chapter 9Trade profits: other specific trades
Dealers in land etc
135Relief in respect of mineral royalties
1
This section applies for the purpose of calculating the profits of a trade carried on by a UK resident company in an accounting period if the receipts of the trade include mineral royalties—
a
which the company is entitled to receive under a mineral lease or agreement, and
b
which are not chargeable to tax under Chapter 7 of Part 4 (rent receivable in connection with a UK section 39(4) concern) because of the priority rule in section 287.
2
The company is treated as entitled to receive only half of the total of the mineral royalties arising under the lease or agreement in the accounting period.
3
Sections 274 to 276 (meaning of “mineral lease or agreement” and “mineral royalties”) apply for the purposes of this section as they apply for the purposes of Chapter 7 of Part 4.
4
See also section 201 of TCGA 1992 (gains treated as accruing to a company entitled to receive mineral royalties).
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)