Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Expenditure on construction at nuclear site facility

08 December 2022
Issue: 4869 / Categories: Tax cases
Urenco Chemplants Ltd and others v CRC, Court of Appeal, 1 December 2022

The taxpayers were part of a corporate group that provided about 30% of the global enriched uranium supply for the civil nuclear industry. It built a tails management facility and claimed capital allowances on the capital expenditure. HMRC ruled that £192m did not qualify.

The First-tier Tribunal dismissed the taxpayers’ appeal saying that all the disputed expenditure was excluded by CAA 2001 s 21 and none was saved by being within list C of s 23. The Upper Tribunal found the decision contained errors of law. It therefore set it aside and remitted it to the First-tier Tribunal. HMRC appealed.

The Court of Appeal agreed with the First-tier Tribunal’s finding that the expenditure was on buildings or ‘items incorporated in or connected with buildings’ rather than plant. It was therefore not eligible for capital allowances under CAA 2001 s 21. HMRC’s appeal against the Upper Tribunal’s...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon