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HMRC internal manual

Capital Allowances Manual

MEA: Allowances and charges: Disposal receipts: non trade use

Where a person carrying on a trade of mineral extraction:

  • acquires a mineral asset which at any later time begins to be used by him or any other person in a way that constitutes development,
  • but it is neither ‘existing permitted development’ nor development for the purpose of that trade,
  • then the asset is treated as having permanently ceased, immediately before that time, to be used by him for the purposes of mineral extraction.


Thus the disposal value of the asset will need to be brought into account, for the chargeable period in which the use begins (CAA01/S422).

‘Existing permitted expenditure’ is:

  • development lawfully completed or commenced before acquisition of the asset,



  • development within the terms of a development order.