682 Marginal mine allowance

Summary

This section effectively applies the marginal coal mine allowance, as set out in section 671, to any qualifying mine within the definition in section 672. If the Minister for Communications, Energy and Natural Resources is satisfied that a qualifying mine would not continue to be worked if the profits of that mine were charged to tax in the normal way, then, the Minister for Finance may direct that a “marginal mine allowance” be given. The allowance is the amount which will ensure that the tax payable is the amount (which can be nil) specified by the Minister for Finance.

Details

(1) A “marginal mine” is one in respect of which the Minister for Communications, Energy and Natural Resources gives a certificate to the effect that the mine would be unworked if the profits of the mine were subject to tax in the normal way.

(2) The Minister for Finance, after consultation with the Minister for Communications, Energy and Natural Resources, may direct that the tax chargeable on the profits of a marginal mine be reduced to such figure (including nil) as the Minister for Finance may specify.

(3) Where such a direction is made, an allowance of such amount is to be made as reduces the tax chargeable to the amount specified by the Minister in the direction.

(4) The section applies to corporation tax as well as to income tax.

Relevant Date: Finance Act 2021