UK Supreme Court Rules Against Ørsted on Offshore Wind Tax Claims

by DredgeWire

The UK Supreme Court has ruled against Ørsted in a long-running dispute over capital allowances related to offshore wind farms.

At issue was whether costs for surveys and studies could be classified as capital allowances. The Court determined they could not, finding that such expenditures lack the necessary direct connection to the physical assets. In its judgment, the Court emphasized that qualifying spending must be closely tied to the provision of the plant, noting that surveys and studies have only a limited link to the long-term value and depreciation of wind farm infrastructure.

The decision overturns a prior ruling by the Court of Appeal in favor of Ørsted, following an appeal by HM Revenue and Customs.

Ørsted described the outcome as “regrettable.”