111 Allowance to owner of let mineral rights for expenses of management of minerals

Summary

The owner of rights to work minerals in the State who leases such rights is entitled to a deduction in respect of expenses incurred wholly, exclusively and necessarily in managing or supervising those minerals.

Details

The relief

(1)(a) The lessor of rights to work minerals in the State is entitled, for a year of assessment, to claim a deduction in respect of expenses wholly, exclusively and necessary incurred in managing or supervising those minerals in that year. The deduction is allowed in the tax year against the actual rent or royalties received in that year. The allowance is made by repaying the tax which the lessor has paid (whether by deduction or otherwise) in respect of the rent or royalties.

(1)(b) The lessor is not entitled to repayment of tax —

• unless he/she proves that tax has been paid on the aggregate amount of the rent or royalties, or
• if, or to the extent that, the expenses have otherwise been allowed as a deduction in computing income for the purposes of income tax.

Claims

(2) A claim under this section must be submitted in writing within 24 months of the end of the relevant tax year.

(3) Where the inspector objects to such a claim, the taxpayer has the right to appeal the objection to the Appeal Commissioners. The appeal is made via notice in writing to the Appeal Commissioners. The appeal must be made within 30 days after the date of the notice of Revenue's objection. The appeal is heard and determined by the Appeal Commissioners in the manner provided for in Part 40A.

Relevant Date: Finance Act 2021