”The Upper Tribunal has dismissed HMRC’s appeal in the case of HMRC v Perenco UK Ltd  UKUT 169 (TCC). The case concerns whether certain expenditure was allowable to reduce the taxpayer’s liability to petroleum revenue tax (PRT). In particular, it concerned the application of the subsidy provisions in Oil Taxation Act 1975 Schedule 3 paragraph 8. The UT held that the subsidy provisions did not apply to disallow expenditure incurred by Perenco in replacing cooling plant at its Dimlington Terminal in order to comply with environmental regulations.
John Brinsmead-Stockham KC acted for the taxpayer – Perenco UK Ltd (Respondent) – instructed CW Energy LLP.
The Upper Tribunal’s decision can be found here.”