Hello,
One of the most significant tax developments this week is the Supreme Court’s judgment in Orsted West of Duddon Sands (UK) Limited & Ors v HMRC. This long-running dispute concerned Orsted’s ability to claim capital allowances on environmental surveys and studies that informed the building of wind farms.
In Orsted West of Duddon Sands (UK) Limited & Ors v HMRC [2026] UKSC 12, the Supreme Court (SC) applied a narrower interpretation to the term ‘on the provision of plant' than was applied by the Court of Appeal (CoA). As such, the cost of preliminary studies and surveys relating to offshore wind farms did not qualify for capital allowances, as there was not a close enough connection between the expenditure and the plant provided.
In Simon Widers v HMRC [2026] TC09836, the First Tier Tribunal (FTT) found that claimed share loss relief arising from an investment in a marine salvage venture was not allowable because the expenditure was not incurred wholly and exclusively for the acquisition of the shares, and in any event, one of the main purposes of the arrangements was to secure a tax advantage.
The Welsh Revenue Authority (WRA) has published the outcome of its consultation 'Legislative Proposals Relating to the Welsh Tax Acts'. While there was general support for the proposals made, it will be for the next Welsh government to decide whether to take them forward.
A new loans to participators tool has been published that allows companies, participators and their agents to confirm to HMRC that a participator has fully repaid a loan declared on a company's tax return. HMRC have also advised that the Corporation Tax online service will not be updated to reflect the increased s.455 tax rates until 6 April 2027.
Hello,
The taxation of stablecoins, online filing exclusions for 2025-26, tax relief for intangible asset amortisation and reasonable care when considering compliance with the Construction Industry Scheme (CIS) are among this week’s topical issues.
In Muller UK and Ireland Group LLP & Ors v HMRC [2026] EWCA Civ 248, the Court of Appeal (CoA) found that the related party restriction on claiming deductions for intangible assets applied to the Limited Liability Partnership (LLP) and its corporate members. As a result, the taxpayer's amortisation deductions were denied tax relief.
HMRC has published a call for evidence on the 'Taxation of stablecoins', a type of cryptoasset. It seeks opinions on issues around the tax treatment of stablecoins for both individuals and companies.
In Kalinga Holdings Limited v HMRC [2026] TC09812, the First Tier Tribunal (FTT) found that a company that purchased an old office building to convert into residential flats was liable to make deductions under the Construction Industry Scheme (CIS) and it had not taken reasonable care to comply with that obligation.
In HMRC v Christopher Brzezicki [2026] UKUT 00125, the Upper Tribunal (UT) allowed an appeal from HMRC, ruling that a property purchase that included a fishing stream and a separate island was residential for Stamp Duty Land Tax (SDLT) purposes.
