671 Marginal coal mine allowance

Summary

This section provides relief for marginal coal mines, that is, coal mines in relation to which the Minister for Communications, Energy and Natural Resources is satisfied that if the profits of the mines were charged to tax in the normal way the mines would not continue to be worked. Essentially, the allowance is the amount which ensures that the tax payable is the amount (which can be nil) specified by the Minister for Finance.

Details

(1) A “marginal coal mine” is one in respect of which the Minister for Communications, Energy and Natural Resources gives a certificate to the effect that the mine would be unworked if the profits of the mine were subject to tax in the normal way.

(2) The Minister for Finance, after consultation with the Minister for Communications, Energy and Natural Resources, may direct that the tax chargeable on the profits of a marginal coal mine be reduced to such figure (including nil) as the Minister for Finance may specify.

(3) Where such a direction is made, an allowance of such amount is to be made as will reduce the tax chargeable to the amount specified by the Minister in the direction.

(4) The section applies to corporation tax as well as to income tax.

Relevant Date: Finance Act 2019