HM Revenue & Customs (appellant) v URENCO (respondent)
Wednesday 5 – Thursday 6 October 2022
This is a second appeal. By appellant’s notice filed on 4 April 2022, the appellant, HMRC, appeals, with the permission of Upper Tribunal Judges Mr Justice Mellor and Judge Thomas Scott, their decision dated 28 January 2022, whereby they allowed in part the respondent’s appeal against the decision of the First-tier Tribunal.
The appeal concerned entitlement to capital allowances in respect of expenditure on a major construction project. The First-tier Tribunal (“FTT”) held that allowances were not available in respect of certain disputed expenditure of approximately £192m incurred on the construction of a substantial nuclear deconversion facility at Capenhurst in Cheshire.
The UT set aside the FTT decision and directed the FTT to remake its decisions that (i) with certain exceptions the “Disputed Expenditure” was not on the provision of plant or machinery in terms of section 11(4)(a) of the Capital Allowances Act 2001; (ii) expenditure on the walls and slab in the ” Vaporisation Facility” was not “on the provision of” plant or machinery in terms of section 11(4)(a) of the Capital Allowances Act 2001; and (iii) all of the “Disputed Expenditure” was prevented from being eligible for plant and machinery allowances by section 21 of the Capital Allowances Act 2001.
Urenco Chemplants Limited and Urenco UK Limited also appeal the same order