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Her Majesty’s Revenue and Customs –v- SSE Generation Ltd

8th – 9th December 2020

HMRC appeal the decision of the Upper Tribunal dated 4 November 2019 whereby the Upper Tribunal dismissed HMRC’s appeal against the decision of the First tier Tribunal (FTT) dated 31 July 2018. The UT remade the decision, still in SSE Generation Limited’s favour (SSEG), but on different grounds.

The UT granted permission to appeal regarding the interpretation of the Capital Allowances Act 2001 (CA 2001) and on a point of practice regarding the interpretation of the Tribunal Procedure (Upper Tribunal) Rules 2008 on the need for a respondent in the UT to obtain permission to cross-appeal.

The FTT allowed in part the appeal of SSEG against the conclusions in various closure notices for the years ending 31 March 2006 to 31 March 2012 to the effect that SSEG’s taxable profits for those years had been understated as a result of claims for capital allowances in respect of fixed asset expenditure in relation to the Glendoe Hydro Electric Power Scheme (the scheme). Capital allowances had been claimed on some 260 million pounds of expenditure on the scheme; only some 34 million pounds was originally accepted by HMRC. Approximately 200 million pounds of expenditure remains in dispute.

The dispute concerned a group of infrastructure assets used in works of civil engineering involving construction, and alterations of land.

View hearing:

Day 1

Part 1

Part 2

Day 2

Part 1

Part 2