HMRC v SSE Generation

In HMRC v SSE Generation [2019] UKUT 332 (4 November 2019) the UT dismissed HMRC’s appeal finding that all the items qualified for capital allowances.

SSE was involved in the generation transmission distribution and supply of electricity and the production storage distribution and supply of gas and various associated energy services. It had constructed the first large-scale hydroelectric scheme with a conventional hydraulic head feed built in the UK in the last 50 years. This appeal was concerned with expenditure incurred in both the original construction of the scheme and the subsequent remedial works.

The issue was the availability of capital allowances on each of the items comprised in the scheme; the question was whether they fell within CAA 2001 s 21 list A or s 22 list B (excluded items) or s 23 list C (items unaffected by the exclusions in lists A...