CA50650 - MEA: Second-hand assets: expenditure on mineral asset: no previous trader

Where there is no previous trader CAA01/S409 restricts the amount to be treated as expenditure on mineral exploration and access attracting the 25% writing down allowances rate. The limit is the amount of the expenditure incurred by the seller on mineral exploration and access in so far as the asset acquired represents that expenditure.

The balance of the acquisition cost qualifies at the 10% writing down allowance rate.