Court of Appeal ruled ScottishPower's Ofgem settlement payments deductible
Short record: the main facts, with sources. A full case file has not been prepared.
- The record does not name which of my species, waters, soils or forests were harmed.
ScottishPower's 2013 to 2016 settlements with the energy regulator Ofgem included symbolic £1 penalties and payments to consumers and charities. The Court of Appeal ruled in January 2025 that payments other than the £1 penalty can be deducted for tax, and the Supreme Court has granted permission to appeal.
- ScottishPower — could deduct most of the settlement payments for tax if the Court of Appeal ruling stands CMS
What happened
Between 2013 and 2016 ScottishPower agreed settlements with Ofgem that included symbolic £1 penalties and payments to consumers, consumer organisations and charities (CMS, 1 July 2025).
The Court of Appeal ruled in January 2025 that these payments, other than the £1 penalty, were not penalties and could be deducted for tax (CMS, 1 July 2025).
The Supreme Court granted permission to appeal on 16 June 2025 (CMS, 1 July 2025).
In court and with insurers
Lawsuits and rulings
- 2025-01OngoingScottishPower tax deductibility of Ofgem settlement paymentsCourt of Appeal; Supreme Court (United Kingdom) · Civil · ScottishPower → Not stated in the sources reviewed
The Court of Appeal ruled in January 2025 that payments other than the £1 penalty were not penalties and could be deducted. The Supreme Court granted permission to appeal in June 2025; its outcome was not found. CMS
Insurers
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Record
- Insufficient Reported but not verified: the settlement payments totalled about £28 million, a figure.
- None on record Not found: the outcome of the Supreme Court appeal.
- None on record Not stated: the opposing party in the appeal.
Did the harm stop?
Not stated in the sources reviewed.
Who paid?
Not stated in the sources reviewed.
Sources
Connected cases
- US tax deductibility of environmental settlements (IRC 162(f)) United States · 2017 Related matter
- EU woody biomass and Enviva pellets United Kingdom · 2012–2026
- Ofgem (Government) — here: energy regulator; counterparty to the settlements; there: Regulator that found the data-reporting breach
- North Sea platform decommissioning tax relief (UK) United Kingdom · 2013–2024
- HM Revenue and Customs (Public authority) — here: UK tax authority; guidance on deductibility; there: Tax authority; relief repayments