The cost of restoring a site or part of a site once mineral extraction has finished is capital expenditure which may be qualifying expenditure for mineral extraction allowances (MEAs)1 as set out below.
Non-ring fence trades
When a source ceases to be worked, and a relevant mineral extraction trade (ie a non-ring fence trade — see below) has therefore ceased, expenditure on the restoration of the site may be treated as qualifying expenditure, eligible for allowances.
The expenditure in question must be incurred within three years from the last day of trading2 on restoration of a 'relevant site' (see below) and the expenditure would have been either3:
- Ìý
•ÌýÌýÌýÌý qualifying expenditure had the trade still been carried on, or
- Ìý
•ÌýÌýÌýÌý allowable as a deduction in computing the profits of the trade
There must not already have been a deduction made in respect of it for income or corporation tax purposes either in that trade or in any trade carried on by the same person4.
A 'relevant
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Web page updated on 17 Mar 2025 17:09