[F1577A Expenditure involving crime.U.K.
(1)In computing [F2profits] chargeable to tax under F3. . . Schedule D, no deduction shall be made for any expenditure incurred —
[F4(a)]in making a payment the making of which constitutes the commission of a criminal offence[F5, or
(b)in making a payment outside the United Kingdom where the making of a corresponding payment in any part of the United Kingdom would constitute a criminal offence there.]
[F6(1A)In computing [F2profits] chargeable to tax under F3. . . 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)[F7Any 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)
F2Words in s. 577A(1)(1A) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a), Sch. 7 para. 1
F3Words in s. 577A(1)(1A) repealed (with effect in accordance with s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(4), Note
F4Words in s. 577A(1) renumbered as s. 577A(1)(a) (with effect in accordance with s. 68(2) of the amending Act) by virtue of Finance Act 2002 (c. 23), s. 68(1)(a)
F5S. 577A(1)(b) and preceding word inserted (with effect in accordance with s. 68(2) of the amending Act) by Finance Act 2002 (c. 23), s. 68(1)(b)
F6S. 577A(1A) inserted (with application in accordance with s. 141(4) of the amending Act) by Finance Act 1994 (c. 9), s. 141(2)
F7Words 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)