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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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MEA: Allowances and charges: Balancing allowances: exploration and access

A balancing allowance is due where a person incurs qualifying expenditure on mineral extraction and access, and later gives up the search, exploration or enquiry without working any of the mineral deposits in question (CAA01/S427).

The allowance is equal to the unrelieved expenditure on mineral access and exploration (providing that the person is carrying on a trade of mineral extraction).