Supreme Court rules ScottishPower redress payments not deductible
In ScottishPower (SCPL) Limited & Ors v HMRC [2026] UKSC 35, the Supreme Court (SC) overturned the decision of the Court of Appeal (CoA), finding that around £28 million of redress payments made to settle regulator investigations were not deductible for Corporation Tax (CT). The payments were akin to penalties, so they were not incurred for the purposes of the trade.
