What’s in a name? Decision of the Supreme Court in HMRC v SSE Generation Limited

Key points

• HMRC has sought to disprove eligibility for capital allowances for SSE.
• The SSE case turned upon the particular definitions of ‘tunnel’ and ‘aqueduct’ and whether these costs would be excluded or not.
• HMRC pursued the SSE case arguing that a tunnel is ‘any subterranean passage’ and that ‘aqueducts’ are ‘conduits to convey water’.
• HMRC sought to challenge the principle of noscitur a sociis – the thematic in SSE of transportation.
• HMRC claimed the Court of Appeal had erred in limiting the scope of aqueducts to a single ‘type of antique aqueduct bridge like canal carrying structures’.
• Well-structured capital allowances claims with reasoned justifications and comprehensive narratives that reference pertinent case law and/or legislation will help timely acceptance of claims.

CRC v SSE Generation Limited UKSC 17 [2023] was an appeal against the previous Court of Appeal decision [2021] STC 369. SSE had built a new 100MW power...