Jurisdiction(s):
United Kingdom

UK Supreme Court clarifies Enterprise Zone Allowances: CAA 2001 s 298 demands year-10 contractual commitment; ‘golden contracts’ and second-period variations insufficient; guidance on distinguishing contractual variation from replacement

Published on: 20 November 2024

Published by a LexisNexis Tax expert

Legal News

Article summary

R (on the application of Cobalt Data Centre 2 LLP and another) v Commissioners for His Majesty’s Revenue and Customs [2024] UKSC 40

Background

This appeal addresses the criteria governing entitlement to the initial 100% capital allowances (EZA) for expenditure on constructing buildings within an enterprise zone under CAA 2001. The focus is CAA 2001, s 298(1), which sets the cut-off for construction spend as either: (a) ten years from the date the site first became part of the zone; or (b) twenty years from that same date if the relevant expenditure is incurred pursuant to a contract made within the initial ten-year window. The judgment labels years one to ten as “the first period” and years eleven to twenty as “the second period”. The appellants (the taxpayers) maintained that their spending on building data centres was incurred “under a contract entered into within those ten years” for the purposes of CAA 2001, s 298(1)(b), thereby qualifying them for relief under the EZA regime. THMRC opposed the claim, contending that the expenditure did not meet the statutory timing requirements and therefore fell outside the permissible periods for relief...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...