SolvedCTM02120 | Corporation Tax: computation of income: special rules: mineral rights
From HM Revenue & Customs · Company Taxation Manual
In computing income from letting the right to work minerals in the UK, a lessor’s necessary expenses of management or supervision of those minerals are allowable.
Management expenses are those incurred wholly, exclusively and necessarily in securing the income, and include cost of collection.
BIM62090 deals with the repeal by FA12/S227 of the provision which formerly divided mineral royalties into equal income and capital parts. It ceased to apply (for CT) to royalties receiveable from 1 April 2013.