Capital Allowances Act 2001 section 393K

Amount of allowance

Section 393K determines the amount of the writing-down allowance available for mineral extraction expenditure in each chargeable period.

• The writing-down allowance for mineral extraction is calculated as a fixed percentage of the qualifying expenditure still unallowed at the end of the chargeable period.
• The percentage used depends on the nature of the expenditure and the type of mineral extraction activity involved.
• The allowance is proportionally reduced or increased where the chargeable period is shorter or longer than a year.
• The section was amended by Finance Act 2012, Schedule 39, paragraph 37, which may have adjusted the applicable rates or calculation method.