Draft legislation to be introduced to the Finance Bill 2013 will confirm gas and electricity distribution companies cannot claim tax relief for costs already paid for by business customers. This will apply to capital allowances claims made on or after 29 May 2013 by a recipient of a contribution and, in certain circumstances, to previously pooled expenditure.
Previously, utility companies have not claimed capital allowances in these circumstances, but some have recently sought to change that in search of a large windfall tax repayment estimated to be worth £900m. As reported in the Financial Times, chancellor George Osborne ‘branded the behaviour of utility companies that had sought to exploit it as “completely unacceptable”.’
Draft legislation to be introduced to the Finance Bill 2013 will confirm gas and electricity distribution companies cannot claim tax relief for costs already paid for by business customers. This will apply to capital allowances claims made on or after 29 May 2013 by a recipient of a contribution and, in certain circumstances, to previously pooled expenditure.
Previously, utility companies have not claimed capital allowances in these circumstances, but some have recently sought to change that in search of a large windfall tax repayment estimated to be worth £900m. As reported in the Financial Times, chancellor George Osborne ‘branded the behaviour of utility companies that had sought to exploit it as “completely unacceptable”.’
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