HM Treasury has issued a summary of feedback on the tax treatment of early project spending, as the UK government considers how existing rules affect investment decisions and business certainty.
The subject was spending while a project is being prepared, before construction or asset installation begins. Examples include testing a project's viability, pursuing regulatory approvals, examining sites and preparing design or engineering plans.
The consultation opened July 13 and closed Sept. 21. HM Treasury asked stakeholders about the amounts and kinds of spending at this stage, how current tax rules apply, where businesses face uncertainty and whether the treatment influences investment or Britain's competitiveness.
The exercise followed a 2026 Supreme Court judgment involving Orsted West of Duddon Sands (UK) Ltd, other parties and HMRC. HM Treasury also linked the consultation to its Corporate Tax Roadmap commitment to give businesses greater certainty when investing. The commitment includes clearer guidance on which expenses qualify for different capital allowances.
The Oct. 28 document brings together the feedback and describes how the government plans to proceed.