Cobalt Data Centre 2 LLP & anr (claimants/appellants) v HM Revenue & Customs (respondent)
Tuesday 11 – Friday 14 October 2022
By the Appellant’s Notice filed on 31 March 2021, the Appellants appeal against two orders made by Mr Justice Zacaroli and Jude Jonathan Richards, (sitting as the Upper Tribunal), dated 15 November 2019 and 14 December 2020 respectively.
By the Appellants’ Notice filed on 30 March 2021, HMRC seeks permission to appeal the same two decisions of the Upper Tribunal.
The dispute relates to claims for enterprise zone allowances (`EZAs’) that the LLPs made for the tax year 2011 in relation to expenditure incurred on the provision of two data centres. Under legislation in force at the time, a capital sum paid for a relevant interest qualified as expenditure attracting enhanced capital allowances equal to 100% of that expenditure. HMRC decided to deny the LLPs’ claims for EZ allowances in their entirety. The LLPs appealed to the First-tier Tribunal and commenced judicial review proceedings on the basis that the position adopted by HMRC was contrary to their published practice. Both sets of proceedings were transferred to the Upper Tribunal.
The Tribunal determined the LLPs were in principle entitled to some EZAs, namely of £76,415,842 and £57,668,432 respectively which represented around half of the allowances the LLPs had originally claimed.
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