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HMRC internal manual

Capital Allowances Manual

MEA: Qualifying expenditure: Buildings overseas

Under the provisions of CAA/S415 a person carrying on a mineral extraction trade outside the UK may incur expenditure for the purposes of the trade in the form of contributions to the cost of buildings to be occupied by employees, infrastructure works or employee welfare facilities connected with the working of a source of minerals.

If by doing so that person:

  • does not acquire any asset,
  • is not entitled to an allowance under any other provision of the Taxes Acts,


  • if when the source ceases to be worked the facilities are likely to be of little or no value to the person working the source immediately before that time,


  • the cost is treated as MEA code qualifying expenditure.


Facilities covered include works for the supply of water, gas and electricity (and other services for the welfare of the employees) to buildings occupied in connection with the working of a source.