Commentary

B3.410 Exclusion of land values

Business tax
Business tax | Commentary

B3.410 Exclusion of land values

Business tax | Commentary

B3.410 Exclusion of land values

If the mineral asset (see B3.405) is an interest in land, so much of the buyer's expenditure on acquiring the asset as is equal to the 'undeveloped market value of the interest' cannot be qualifying expenditure1.

The 'undeveloped market value of the interest' is defined2 as the amount that the interest might reasonably be expected to fetch on a sale in the open market at the time it is acquired, given certain assumptions. Those assumptions are that3:

  1.  

    (a)     there is no source of mineral deposits on or in the land; and

  2.  

    (b)     it will only ever be lawful to carry out existing permitted development.

Development is existing permitted development if at the time of the acquisition it has been, or had begun to be, lawfully carried out; or it could be lawfully carried out under planning permission granted by a

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial