Part 4Property income

Chapter 7Rent receivable in connection with a UK section 39(4) concern

Management expenses of owner of mineral rights

272Deduction for management expenses of owner of mineral rights

(1)

This section applies if in an accounting period—

(a)

a company lets a right to work minerals in the United Kingdom, and

(b)

the company pays a sum wholly and exclusively as an expense of management or supervision of the minerals in the accounting period.

(2)

In calculating the amount of rent receivable in connection with a UK section 39(4) concern, a deduction is allowed for the sum for the accounting period.

(3)

This is subject to section 273 (relief in respect of mineral royalties).