OT26335 - Capital allowances: mineral extraction allowance - limitations on qualifying expenditure on second hand assets
There are limits placed on qualifying expenditure on second hand assets under CAA2001\S407-409 (see OT26320, OT26325 & OT26330).
CAA2001\S410 UK oil licences, the limit is the original licence payment (see OT26360)
CAA2001\S411 Assets generally, the limit is the residue of the previous trader바카라 사이트™s qualifying expenditure.
CAA2001\S412 Transfer of mineral assets within a group, the limit is the initial group expenditure. A group is defined at CAA2001\S413.
There is also a restriction on qualifying expenditure to exclude any expenditure on which a deduction has been given to a previous trader for intangible drilling costs (CAA2001\S407(4)). This covers cases where the previous trader received Case 1 relief under the old New Brunswick treatment.