Gunfleet Sands: Supreme Court rules on the limits of “expenditure on the provision of plant”

The Supreme Court’s decision in Gunfleet Sands confirms a narrow interpretation of when expenditure is “on the provision of plant” under section 11 of the Capital Allowances Act 2001, ruling that pre-construction costs such as environmental surveys for windfarm projects are too remote to qualify. The judgment underscores the limits of capital allowances for infrastructure and renewable energy projects, while leaving some scope for later-stage costs (such as certain design or installation-related activities) to qualify depending on the facts, and adds urgency to the government’s anticipated consultation on the tax treatment of pre-development expenditure.

Read more in our blog post, and listen to our latest Tax News podcast below for further insights.

Skip to 01:38 below to listen to Alex Dustan (Partner) and Zoe Andrews (Head of Tax Knowledge) discussing the Supreme Court’s decision in the Gunfleet Sands case and the changes to the Electricity Generator Levy in our May 2026 Tax News episode.