SSE Generation Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Capital allowances) [2018] UKFTT 416 (TC) (31 July 2018)

SSE Generation Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Capital allowances) [2018] UKFTT 416 (TC) (31 July 2018)

The Tribunal held that certain hydroelectric scheme assets (water intakes, conduits made of pipelines, remedial works) qualify for capital allowances as plant and machinery under CAA 2001, as they are not excluded by sections 21 or 22, or are saved by List C exceptions. Other assets (drilled and blasted conduits classified as aqueducts) are excluded by List B and do not qualify.

Citation
[2018] UKFTT 416
Parties
Appellant: SSE Generation Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
31 July 2018
Procedural Posture
Corporation Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
Capital Allowances, Plant and Machinery, Statutory Interpretation, Hydroelectric Scheme Assets
Tax Law Corporation Tax Capital Allowances Plant and Machinery Statutory Interpretation Hydroelectric Scheme Assets

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Parties

SSE Generation Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Corporation Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether various hydroelectric scheme assets qualify for plant and machinery capital allowances under Capital Allowances Act 2001
  2. 2 Interpretation of statutory exclusions in sections 21-23 CAA 2001

Ratio Decidendi

The Tribunal held that certain hydroelectric scheme assets (water intakes, conduits made of pipelines, remedial works) qualify for capital allowances as plant and machinery under CAA 2001, as they are not excluded by sections 21 or 22, or are saved by List C exceptions. Other assets (drilled and blasted conduits classified as aqueducts) are excluded by List B and do not qualify.

Court Disposition

Appeal allowed in part

Orders

  • Certain assets (water intakes, pipeline conduits, remedial works) qualify for capital allowances; other assets (aqueducts, some tunnels) do not. Quantum to be determined later if not agreed.