Related Commentary  Related HMRC Manuals

412(1)  Subject to section 413, this section applies if–

(a)a company (“the buyer” ) incurs capital expenditure on acquiring a mineral asset (“asset X” ) from another company (“the seller” ), and

(b)the seller is a group company in relation to the buyer at the time of the acquisition.

412(2)  The buyer’s expenditure on acquiring asset X is to be left out of account for the purposes of this Part to the extent that it exceeds–

(a)the capital expenditure incurred by the seller on acquiring asset X, or

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