SSE has praised a Supreme Court decision supporting the company in a prolonged legal battle concerning the Glendoe Hydro Electric Station.

During the construction of the hydro-electric power station in Glendoe, Fort Angus, Scotland, SSE utilised tax allowances on capital expenditure.

These allowances enable deductions from profits for the purpose of calculating corporation tax.

The HMRC commissioners had contested SSE’s claimed allowances from 2006 to 2012, arguing that certain assets did not qualify as allowable expenditure under the Capital Allowances Act 2021.

The court’s decision upholds the eligibility of around £200 million of Glendoe expenditure for capital allowances, allowing SSE to benefit from tax relief against the group’s taxable UK profits for about 50 years.

In a statement, SSE said: “We welcome the decision by the UK Supreme Court which has unanimously found in favour of SSE in its long-running capital allowances case in relation to Glendoe Hydro Electric Station.

“This ruling provides welcome clarity on the tax treatment of allowances and credits for essential low carbon assets. Such allowances and credits play an important contributory role in low carbon investments and will support the ongoing actions SSE is taking as the UK’s clean energy champion to deliver the homegrown energy infrastructure the country needs.”

An HMRC spokesperson told ELN: “We note the decision of the Supreme Court in this case and are carefully considering the judgement.”