BIM62090 - Measuring the profits (particular trades): Mineral extraction: royalties relief: introduction
S201 Taxation of Chargeable Gains Act 1992; S157, S314, S319 and S340 Income Tax (Trade and Other Income) Act 2005; S135, S258 and S273 Corporation Tax Act 2009; Para45 Sch39 Finance Act 2012
This relief has been withdrawn in respect of mineral royalties that a person is entitled to receive on or after 1 April 2013 in respect of businesses subject to Corporation Tax and 6 April 2013 in respect of businesses subject to Income Tax.
If mineral royalties were received before 1 April 2013 (Corporation Tax) or before 6 April 2013 (Income Tax) they were regarded as divisible into equal income and capital parts. »Ê¹ÚÌåÓýapp half regarded as income remained subject to IT or CT and the half regarded as capital was charged to CGT (or as a chargeable gain for CT purposes) (see CG71700 onwards).