Section 240CA | Unrelieved qualifying expenditure: Part 5 of CAA 2001 ^F1F2

(1)This section applies if a person carrying on a mineral extraction trade enters the cash basis for a tax year (“the current tax year”).^F1F2

(2)But this section does not apply if section 240D applies.^F1F2

(3)In calculating the profits of the trade for the current tax year, a deduction is allowed for any amount of expenditure—^F1F2

(a)which would, apart from section 419A(1) of CAA 2001, have been unrelieved qualifying expenditure for the current tax year, and^F1F2

(b)for which a deduction would be allowed in calculating the profits of the trade on the cash basis on the assumption that the expenditure was paid in the current tax year.^F1F2

(4)In this section—^F1F2

“mineral extraction trade” has the meaning given in section 394 of CAA 2001;

“unrelieved qualifying expenditure” means unrelieved qualifying expenditure for the purposes of Part 5 of CAA 2001 (see section 419 of that Act).