UK Tax Ruling Throws Cost Question Into Infrastructure Projects

UK infrastructure developers risk losing out on tax deductions they were counting on for some early-stage project costs after a recent Supreme Court ruling against Danish energy company Orsted.

The judgment narrowed the scope of the deductions, called capital allowances, and raised uncertainty about whether design and other capital costs will qualify for relief, according to tax professionals.

The ruling could have implications for major UK projects, including airport expansions at Gatwick and Heathrow, small modular nuclear reactors in North Wales, and a planned Universal Studios theme park, said Rupert Guppy, innovation and capital tax reliefs partner at RSM UK. ...