Technical Insights

Independent analysis of capital allowances case law, property transactions, construction expenditure, tax policy and compliance.

Pre Construction Costs Tax Treatment Post Orsted

Capital investments, and particularly more complex investments, with greater upfront risk are likely to be most affected by the Orsted ruling with reduced qualifying costs for tax purposes. In this article we explore the tax implications of the ruling in detail.

Bryan Crawford

Jul 156 min read

Latest Insights

Pre Construction Costs Tax Treatment Post Orsted

Capital investments, and particularly more complex investments, with greater upfront risk are likely to be most affected by the Orsted ruling with reduced qualifying costs for tax purposes. In this article we explore the tax implications of the ruling in detail.

Bryan Crawford

Jul 156 min read

Supreme Court Reverses Orsted: A Final Narrowing of Pre-Construction Capital Allowances

The Supreme Court in Orsted v HMRC [UKSC 12] ruled that pre-construction environmental studies do not qualify for capital allowances. The Court established a narrow "close connection" test, holding that expenditure must be directly "on" the plant rather than merely "in connection with" it. Studies providing advice on how to choose or design plant are considered too remote and fall "well outside the limiting curve" of qualifying costs.

Bryan Crawford

Apr 155 min read

Nuclear Reactors and a £2 Billion Tax Claim: Why This High-Stakes Battle Was Labelled ‘Standard’

The Tribunal refused the application, concluding that while the underlying tax dispute involving £2 billion in Research and Development (R&D) allowances for Hinkley Point C is undeniably complex, the specific appeal against the information notice did not meet the necessary threshold requirements.

Bryan Crawford

Mar 65 min read

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