Open consultation

Tax Treatment of Predevelopment costs

• From: HM Treasury
• Published: 13 July 2026

Summary

The government is consulting on the tax treatment of predevelopment costs. The consultation seeks views and evidence from stakeholders on the types of costs incurred, their treatment under the current rules, and the impact on investment decisions.

This consultation closes at
11:59pm on 21 September 2026

Consultation description

The government committed in the Corporate Tax Roadmap to provide greater certainty for businesses to invest, including by providing greater clarity on what qualifies for different capital allowances.

After a lengthy litigation process, the Supreme Court has now issued its judgment in the case of Orsted West of Duddon Sands (UK) Ltd and others v HMRC [2026]. In line with the commitment in the Corporate Tax Roadmap, the government is now consulting to understand whether businesses are uncertain the current tax treatment of predevelopment costs as well as the commercial impact of the current legislation.

Documents

Tax treatment of predevelopment costs: Consultation

PDF, 245 KB, 14 pages

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Ways to respond

Email to:

predevcosts@hmtreasury.gov.uk

Published 13 July 2026