HMRC’s appeal against the Court of Appeal’s judgment in respect of HMRC v SSE Generation Ltd [2021] EWCA Civ 105 has been listed for hearing by the Supreme Court on 23 March 2023 (Case ID: 2021/0056).
“Issue
Whether and to what extent SSE is entitled to claim capital allowances for the expenditure that it incurred in the construction of the Glendoe Hydro Electric Power Scheme.
Facts
SSE claimed capital allowances on expenditure incurred when constructing the Glendoe Hydro Electric Power Scheme in Scotland (the Scheme). HMRC disputed £227 million of SSE’s claimed capital allowances for tax years 31 March 2006 to 31 March 2012 on the basis that certain of the assets did not give rise to allowable expenditure under the Capital Allowances Act 2001. SSE appealed to the First Tier Tribunal (FTT). The FTT upheld HMRC’s challenge to SSE’s claimed allowances in part. HMRC appealed to the Upper Tribunal, who dismissed the appeal and remade the decision largely in SSE’s favour. HMRC appealed to the Court of Appeal. The Court of Appeal allowed the appeal in relation to the Upper Tribunal’s decision on certain specified conduits on the basis that SSE had no permission to cross-appeal, and otherwise dismissed HMRC’s appeal. HMRC now seeks permission to appeal to the Supreme Court.”
All hearings are available to watch live and on-demand via the Supreme Court’s website.
Related content from Claritax Books
The A-Z of Plant and Machinery, by Ray Chidell and Jake Iles, analyses more than 300 common types of expenditure, explaining whether and when the expenditure may qualify for plant and machinery allowances. Full reference is made throughout to legislation, case law and HMRC guidance.
