Commentary

B3.354 Plant and machinery allowances—mining and oil industries

Business tax
Business tax | Commentary

B3.354 Plant and machinery allowances—mining and oil industries

Business tax | Commentary

B3.354 Plant and machinery allowances—mining and oil industries

First-year allowances

For the first-year allowances given for expenditure incurred by a company on the provision of plant and machinery for use wholly for the purposes of a ring fence trade subject to the supplementary charge, see B3.324C. For the first-year allowances given under the mineral extraction allowances code, see B3.406A, B3.419.

Expenditure treated as incurred for purposes of mineral extraction trade

Expenditure incurred on the provision of plant or machinery for mineral exploration and access, and in connection with a mineral extraction trade is treated as incurred for the purposes of that trade1.

In relation to claims made on or after 1 April 2014 (corporation tax) or 6 April 2014 (income tax) this rule does not apply if, when the person incurs the expenditure, the trade being carried on is not a mineral extraction trade (because for example it is not within the charge to UK tax), or when it is incurred the trade has not begun, and when it is begun it is not a mineral extraction trade2. References to the commencement of a trade do not include the occurring of an event which, under any provision of the Income or Corporation Tax Acts, is to be treated as the equivalent to the commencement of a trade3. For the definition of a mineral extraction trade see B3.405. This is part of a provision introduced in Finance Act 2014 to clarify the treatment of capital allowances where the mineral extraction activity enters or

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