§ Mr. Hoosonasked the Chancellor of the Exchequer what tax concessions are available in the United Kingdom to encourage mineral exploration.
§ Mr. NottCapital expenditure by the mineral extraction industry on plant and machinery and on buildings qualifies for tax relief under the general provisions of the capital allowances code. In addition, capital expenditure, such as the cost of abortive or successful exploration and the acquisition of mineral rights, benefits from a complex of allowances which are special to the mining industry and are contained in Chapter III, Part I of the Capital Allowances Act 1968. A joint400W Working Party of officials and representatives from the industry is at present looking at these special provisions with particular regard to the simplification and timing of the allowances.
Under Section 29 of the Finance Act 1970, one-half of mineral royalties receivable after 5th April 1970 are taxed as capital gains rather than as income.