OT26301 - Capital allowances: mineral extraction allowance - introduction

The main guidance on Mineral Extraction Allowance (MEA) is held in the Capital Allowances Manual at CA50000 onward. The guidance in the Oil Taxation Manual on MEA adds to that guidance on issues particularly relevant to the oil and gas sector.

Allowances are available if a person carries on a mineral extraction trade and incurs qualifying expenditure for the purposes of that trade. In this chapter references to trade, trader, trading etc are to a trader resident in the United Kingdom carrying on a mineral extraction trade.