The category into which expenditure falls may determine the extent of allowances available. In particular, expenditure on the acquisition of a mineral asset (see below) attracts writing-down allowances at a rate of only 10% (CAA 2001, s. 418(1)), compared to a rate of 25% for other qualifying expenditure.

Expenditure incurred by a person about to carry on a mineral extraction trade is treated as incurred on the day that the person does first carry it on.

Original expenditure is distinguished from second-hand costs, the qualifying expenditure being determined differently in relation to each.

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