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 ceased thereby, 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 trading1 on restoration of a 'relevant site' (see below). It must be such that it would either2:
(a) have been qualifying expenditure were the trade still being carried on; or
(b) have been 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 person3.
A 'relevant site' means the site of a source to the working of which the relevant mineral extraction trade related, or land used in connection with the working of such a source4. 'Restoration' includes landscaping5. Where the land is in the UK, it also includes any works required by the grant of planning permission for the winning and working of the minerals6. In the case of land outside the UK, it