Visit JCPCUKSC/2025/0069
•
TAX
Orsted West of Duddon Sands (UK) Limited (now named Orsted Schroders Greencoat WODS Holdco Limited) and others (Respondents) v Commissioners for His Majesty's Revenue and Customs (Appellant)
Case summary
Case ID
UKSC/2025/0069
Parties
Appellant(s)
The Commissioners for His Majesty's Revenue and Customs
Respondent(s)
(1) Orsted West of Duddon Sands (now named Orsted Schroders Greencoat WODS Holdco Limited), (2) Gunfleet Sands II Limited, (3) Gunfleet Sands Limited, (4) Walney (UK) Offshore Windfarms Limited
Issue
Do costs incurred on surveys and studies during the development of windfarms qualify for capital allowances under section 11(4) Capital Allowances Act 2001?
Facts
Ørsted owns and operates offshore windfarms. During the course of planning and designing their windfarms, Ørsted spent considerable sums on surveys and studies investigating many different aspects of the environment in which the windfarms would be constructed. The issue in this case is whether those costs qualify for capital allowances so as to reduce Ørsted’s tax liability. Capital expenditure will qualify under section 11(4) if certain conditions are met. One such condition is that “it is capital expenditure on the provision of plant”. HMRC accept that the generation assets of the windfarm treated as a single item is “plant” and that the expenditure on the reports and studies was capital in nature. The issue is whether the costs incurred in obtaining the surveys and studies to investigate the environment were incurred “on” the provision of the windfarms. The First-Tier Tribunal held that most of the expenditure currently in dispute did qualify for capital allowances. The Upper Tribunal allowed HMRC’s appeal and held that none of the studies qualified. The Court of Appeal allowed Ørsted’s appeal. HMRC now appeals to the Supreme Court.
Date of issue
23 April 2025
Case origin
PTA
Written arguments
Statements of Facts and Issues
Judgment details
Judgment date
15 April 2026
Neutral citation
[2026] UKSC 12
Appeal
Justices
Hearing dates
Full hearing
Start date
3 February 2026
End date
4 February 2026
Watch hearings
3 February 2026 - Morning session
3 February 2026 - Afternoon session
4 February 2026 - Morning session
All videos on this page are recorded and transmitted in line with the Court's terms of use. These can be found here. Please Note: Every effort is being made to provide a satisfactory streaming service of the Supreme Court judgments and hearings. However, these services may be subject to technical issues or delay, in which case we will attempt to resolve them as soon as possible.
Permission to Appeal
Justices
Permission to Appeal decision date
4 July 2025
Permission to Appeal decision
Granted
Previous proceedings
Change log
Last updated 20 August 2025