Capital allowances were available for much of the expenditure incurred by SSE on its 100MW Glendoe hydroelectric scheme, the UK’s first-tier tax tribunal has decided after HM Revenue & Customs (HMRC) originally refused claims over expenditure of about £227 million.

The claims centred on expenditure on the water-collection and transmission infrastructure involved in the scheme, as well as the construction of an underground chamber in which the generation and transformer equipment was housed and its related access tunnels.