UPDATE ON CASE
SSE GENERATION LIMITED V THE COMMISSIONERS FOR HMRC
HMRC TO CHALLENGE THE FIRST TIER TRIBUNAL TAX CHAMBER RULING
HMRC have decided to challenge the ruling given by the First Tier Tax Tribunal which they considered was largely in favour of the taxpayer. The case is to be heard by the Upper Tax Tribunal on the 10/11 September 2019 at Court 24, The Royal Courts of Justice, Strand, London, WC2A 2LL.
While the case is focused on a large scale hydroelectricity facility, it is an important case as the FTT’s ruling was based on going back to basics when determining whether an asset was plant. The conclusion reached was that the item in question needs to be given its everyday meaning and considered on its function.
While the facts relate to an engineering project on a vast scale, the case will have wider implications for all taxpayers undertaking projects and claiming capital allowances.