C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

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).