[F1577A Expenditure involving crime.U.K.
(1)In computing profits or gains chargeable to tax under Schedule A or Schedule D, no deduction shall be made for any expenditure incurred in making a payment the making of which constitutes the commission of a criminal offence.
[F2(1A)In computing profits or gains chargeable to tax under Schedule A or Schedule D, no deduction shall be made for any expenditure incurred in making a payment induced by a demand constituting—
(a)the commission in England or Wales of the offence of blackmail under section 21 of the Theft Act 1968,
(b)the commission in Northern Ireland of the offence of blackmail under section 20 of the Theft Act (Northern Ireland) 1969, or
(c)the commission in Scotland of the offence of extortion.]
(2)[F3Any expenditure mentioned in subsection (1) or (1A) above] shall not be included in computing any expenses of management in respect of which relief may be given under the Tax Acts.]
Textual Amendments
F1S. 577A inserted (with application in accordance with s. 123(2) of the amending Act) by Finance Act 1993 (c. 34), s. 123(1)(2)
F2S. 577A(1A) inserted (with application in accordance with s. 141(4) of the amending Act) by Finance Act 1994 (c. 9), s. 141(2)
F3Words in s. 577A(2) substituted (with application in accordance with s. 141(4)) of the amending Act) by Finance Act 1994 (c. 9), s. 141(3)