CA50500 | MEA: Allowances and charges: Balancing allowances: assets destroyed or dismantled

A balancing allowance is due for unrelieved expenditure, in accordance with CAA01/S430(2), where a person:

• permanently loses possession of assets,

or

• they cease to exist, for example on being destroyed or dismantled,

or

• they begin to be used wholly or partly for a purpose other the trade of mineral extraction.

This is subject to any disposal receipts that need to be brought into account.

Note that demolition costs are treated as qualifying expenditure (CAA01/S433).