Capital allowances were not available for expenditure incurred on a variety of studies (including surveys) carried out in the years before wind farms became operational.
The respondent companies (Orsted) owned and operated offshore wind farms. They claimed capital allowances on expenditure incurred on a variety of studies (including surveys) undertaken as part of the environment impact assessment carried out before the windfarms became operational. HM Revenue and Customs (HMRC) denied the allowances. Orsted appealed. The FTT concluded that Orsted were entitled to capital allowances in relation to some of the costs of the studies. HMRC appealed. The Upper Tribunal held that Orsted could not claim capital allowances. However, the Court of Appeal allowed Orsted’s subsequent appeal and 
