Section 401 | Pre-trading exploration expenditure

(1)This section applies if—

(a)a person incurs pre-trading expenditure on mineral exploration and access at a source, and

(b)the expenditure is not incurred on the provision of plant or machinery.

(2)The amount of the expenditure (“pre-trading exploration expenditure”) that is qualifying expenditure depends on whether mineral exploration and access is continuing at the source on the first day of trading.

(3)If it is, so much of the pre-trading exploration expenditure as exceeds any relevant receipts is qualifying expenditure.

(4)If it is not, only so much of the pre-trading exploration expenditure as—

(a)was incurred within 6 years ending on the first day of trading, and

(b)exceeds any relevant receipts,

is qualifying expenditure.

(5)“Relevant receipts” means capital sums received—

(a)by the person incurring the pre-trading exploration expenditure referred to in subsection (3) or (4), and

(b)before the first day of trading,

so far as they are reasonably attributable to that expenditure.