Section 416B | Expenditure incurred by company for purposes of a ring fence trade ^F1

(1)Expenditure is first-year qualifying expenditure if—

(a)it is incurred on or after 17th April 2002,

(b)it is incurred by a company,

(c)it is incurred wholly for the purposes of a ring fence trade, and

(d)it is not excluded by—

(i)subsection (2) (acquisition of mineral asset), or

(ii)subsection (3) (acquisition of asset representing expenditure of connected company).

(2)Expenditure is not first-year qualifying expenditure under this section if it is expenditure on acquiring a mineral asset (within the meaning of section 403).^F2

(3)Expenditure is not first-year qualifying expenditure under this section if it is expenditure incurred by a company on the acquisition of an asset representing expenditure incurred by a company connected with that company.

(4)To the extent that references in this section to an asset representing expenditure incurred by a company include a reference to an asset representing expenditure on mineral exploration and access, they also include a reference to any results obtained from any search, exploration or inquiry on which any such expenditure was incurred.

(5)In this section “ ring fence trade ” means a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).^F3