680 Annual allowance for mineral depletion

Summary

This section provides for a mineral depletion allowance in respect of capital expenditure incurred in acquiring a deposit of scheduled minerals or land containing such a deposit, for the purposes of engaging in mining.

Details

(1) Where a person who is engaged in working a qualifying mine incurs capital expenditure after 31 March 1974 on the acquisition of a scheduled mineral asset, the person will, on commencing to work the deposits, be entitled to claim a mine development allowance in respect of that capital expenditure. The allowance is given under section 670 over the life of the mine (or 20 years), and not in the form of an “immediate” allowance under section 673.

(2) Where a person who commences working a deposit of scheduled minerals on or after 6 April 1974 had incurred expenditure on acquiring the deposit prior to such commencement, the person is deemed to have incurred that expenditure on the date of such commencement and the allowance provided by subsection (1) applies accordingly.

Relevant Date: Finance Act 2019