Source: United Kingdom – Executive Government & Departments 3
Tax treatment of predevelopment costs: update on consultation
Following the Court of Appeal judgement on 17 March on matters with significant readout across to this issue, the government is updating on the publication of the consultation on the tax treatment of predevelopment costs.
At Autumn Budget 2024, the government committed to publishing a consultation on the tax treatment of predevelopment costs. On 17 March, the Court of Appeal handed down its judgement in the case of Orsted West of Duddon Sands (UK) Limited and others v HMRC.
Following the Court of Appeal judgement on 17 March on matters with significant readout across to this issue, the publication of the consultation on the tax treatment of predevelopment costs is being postponed. The government is considering the implications of the judgment for the consultation. To give stakeholders and government time to reflect on the judgement, the government will determine its next steps in respect to this consultation in due course.
In the interim, the government welcomes views on what this judgement means for you or the businesses you represent. Do let us know via predevcosts@hmtreasury.gov.uk