United Kingdom Supreme Court Issues Judgment on Capital Allowances for Pre-Construction Surveys, Studies for Windfarms

The United Kingdom Supreme Court April 15 issued a judgment in Case No. UKSC/2025/0069, on capital allowances for pre-construction surveys and studies for offshore windfarms. The taxpayers, members of a company group with Orsted being the parent company, developed and operated offshore windfarms and incurred capital expenditure on pre-construction technical studies. The taxpayers sought capital allowances, arguing that the studies informed the design and installation of the plant. The Tax Agency disallowed the claims, contending that the studies were advisory and remote from the plant. The First-tier Tribunal partially allowed the claims, with the Upper Tribunal subsequently disallowing the claims ...