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The calculation of mineral extraction writing-down allowances¹ is similar to that for plant and machinery assets (see Division B3.3) in that the provisions provide for writing-down allowances on the reducing balance basis. However, there is no provision for pooling expenditure, although a single item of expenditure may involve more than one asset.

A person's entitlement to a writing-down allowance for a chargeable period (for balancing allowances and charges, see B3.421) depends on²:

1. Ìý

   •ÌýÌýÌýÌý how much of the qualifying expenditure in question is unrelieved qualifying expenditure for that period ('UQE', see below), and

2. Ìý

   •ÌýÌýÌýÌý the total of any disposal receipts (see below) to be brought into account for that period ('TDR') by reference to the expenditure

If UQE exceeds TDR, the person is entitled to a writing-down allowance, except where it is provided for the entitlement to be to a balancing allowance (see B3.421)³. The person must incur the qualifying expenditure for the purposes of a mineral extraction trade, as detailed in B3.406⁴. However, qualifying expenditure incurred