Related Commentary  Related HMRC Manuals

404(1)  If the mineral asset is an interest in land, so much of the buyer’s expenditure on acquiring the asset as is equal to the undeveloped market value of the interest is not qualifying expenditure.

404(2)  “The undeveloped market value of the interest”  means the amount that, at the time of the acquisition, the interest might reasonably be expected to fetch on a sale in the open market on the assumptions in subsection (3).

404(3)  The assumptions are that–

(a)there is no source of mineral deposits on or in the land, and

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