R (on the application of Cobalt Data Centre 2 LLP and another) (Appellants) v Commissioners for His Majesty's Revenue and Customs (Respondent)

Case summary

Case ID

UKSC/2022/0174

Parties

Appellant(s)

Cobalt Data Centre 2 LLP

Cobalt Data C

Respondent(s)

Commissioners for His Majesty's Revenue and Customs

Issue

Were the LLPs entitled to enterprise zone allowances in respect of the price they paid to acquire the benefit of a construction contract?

Facts

In 2011, Cobalt Data Centre 2 LLP and Cobalt Data Centre 3 LLP (the "LLPs") purchased the benefit of a contract for the construction of buildings within an "enterprise zone" (the "Golden Contract"). The Golden Contract had been entered into in 2006 between a developer and a contractor, and the buildings were completed in 2012. The LLPs claimed that the requirements of section 298(1)(b) of the Capital Allowances Act 2001 (the "CAA 2001") were met and therefore the whole of the price they had paid to acquire the benefit of the Golden Contract qualified for enterprise zone allowances ("EZAs"). HMRC rejected their application, finding that the requirements of section 298(1)(b) had not been met and so no EZAs were payable. The Upper Tribunal ("UT") disagreed, holding that the requirements of section 298(1)(b) had been met. However, in a separate decision on quantum, the UT allowed the LLPs only around half of the EZAs they had sought. HMRC appealed and the LLPs cross-appealed in relation to quantum. The Court of Appeal ("CA") allowed HMRC's appeal and adjourned the LLPs' cross-appeal pending the outcome of the LLPs' proposed appeal to the Supreme Court. The LLPs now appeal to the Supreme Court.

Judgment appealed

Appeal

Justices

Lord Briggs

Lord Sales

Lord Burrows

Lady Rose

Lord Richards

Hearing dates

Full hearing hearing

Start date

24 January 2024

End date

25 January 2024

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