Commentary

B3.412 Assets formerly owned by non-traders

Business tax
Business tax | Commentary

B3.412 Assets formerly owned by non-traders

Business tax | Commentary

B3.412 Assets formerly owned by non-traders

A person (the seller) may incur expenditure on assets for mineral exploration and access but may dispose of those assets without having carried on a mineral extraction trade. Where another person (the buyer) acquires those assets for the purposes of a mineral extraction trade, his qualifying expenditure may not exceed the expenditure of the seller represented by those assets1.

As regards the acquisition of an oil licence, see B3.413.

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