Commentary

B5.662 Rents and royalties in respect of mines, quarries etc

Business tax
Business tax | Commentary

B5.662 Rents and royalties in respect of mines, quarries etc

Business tax | Commentary

B5.662 Rents and royalties in respect of mines, quarries etc

Where a concern which is a mine, quarry, gravel pit, sand pit or brickfield realises profits or losses arising out of land, such profits or losses are computed as if the concern were a trade1.

There is a separate provision dealing specifically with mining rents. In its original form (ICTA 1988, s 119), the rents were chargeable under Schedule D. In particular, where the rents were rendered in produce of the mine etc, the charge was under Schedule D Case III. The rewrite of that section is included in ITTOIA 2005, ss 260–364 (Pt 3) (income tax) and CTA 2009, ss 34–201 (Pt 3) (corporation tax), which apply to property income2. The Explanatory Notes to the Corporation Tax Bill are confusing3. In the overview note to Chapter 7 it is stated that rents receivable in connection with a mining concern etc are charged as property income. But the note on clause 270 and Change 53

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