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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.4 Mineral extraction /Mineral extraction allowances—qualifying expenditure / B3.407 Pre-trading expenditure on mineral exploration and access
Commentary

B3.407 Pre-trading expenditure on mineral exploration and access


Business tax

Mineral extraction allowances are given to a person who is carrying on a mineral extraction trade. It is a question of fact as to when such trading begins, but as regards the development of oil and natural gas resources it is agreed1 that the five stages in the sequence of such exploration and development are:

  1. Ìý

    ÌýÌýÌýÌý Stage 1 Geological and geophysical;

  2. Ìý

    ÌýÌýÌýÌý Stage 2 Exploration drilling;

  3. Ìý

    ÌýÌýÌýÌý Stage 3 Appraisal drilling;

  4. Ìý

    ÌýÌýÌýÌý Stage 4 Development drilling;

  5. Ìý

    ÌýÌýÌýÌý Stage 5 Production operations.

These

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