»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp term ‘mineral assetâ€� is defined in CAA01/S397 as ‘any mineral deposits or land comprising mineral deposits or any interests in or rights over such deposits or landâ€�.

»Ê¹ÚÌåÓýapp cost of obtaining an option over mineral deposits constitutes qualifying expenditure within CAA01/S395 (1)(b) and CAA01/S398.

Expenditure on non-mineral bearing land acquired to give access to adjacent mineral deposits is not qualifying expenditure even though the access land may have been bought at a premium over its existing use value.

»Ê¹ÚÌåÓýapp costs of production licences represent expenditure on mineral assets rather than exploration and access.

»Ê¹ÚÌåÓýapp terms of the planning permission or licence to exploit a mineral deposit will normally require the mine operator to undertake a range of work to make the land fit for future use once the mining operations have ceased. This ‘restoration expenditureâ€� is part of the costs of acquiring the rights to the mineral deposits and is qualifying expenditure within CAA01/S395 (1)(b) - see CA50280.

Expenditure incurred in acquiring mineral deposits (or land comprising them) may fall within both CAA01/S.396 - mineral exploration and access - and CAA01/S397 - acquisition of a mineral asset. Where this happens CAA01/S398 states that the expenditure is treated as being on the acquisition of a mineral asset. »Ê¹ÚÌåÓýapp practical effect of this is that allowances are only available at 10%.