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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.4 Mineral extraction /Mineral extraction allowances—qualifying expenditure / B3.411 Formerly owned mineral extraction assets
Commentary

B3.411 Formerly owned mineral extraction assets

Business tax

The amount of qualifying expenditure on a mineral asset may be restricted where a person (the buyer) carrying on a mineral extraction trade acquires by purchase from another person (the vendor) an asset which has previously been owned by a person carrying on such a trade, whether the vendor or a previous owner. The restrictions do not apply where the purchased asset is a mineral asset situated in the UK and the buyer's capital expenditure was incurred under a contract entered into by him before 16 July 19851. In the case of a mineral asset which consists of or includes an interest in or right over mineral deposits or land, the asset is not to be regarded as situated in the UK unless the deposits or land are or is so situated2.

The qualifying expenditure of the buyer is restricted by reference

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