827 VAT penalties etc.U.K.
M1(1)Where, under [F1Part IV of the Value Added Tax Act 1994], a person is liable to make a payment by way of—
(a)penalty under any of sections [F260 to 70]; or
(b)interest under section [F374]; or
(c)surcharge under section [F359];
the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
[F4(1B)Where a person is liable to make a payment by way of—
(a)penalty under any of paragraphs 12 to 19 of Schedule 7 to the Finance Act 1994 (insurance premium tax), or
(b)interest under paragraph 21 of that Schedule,
the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.]
(2)A sum paid to any person by way of supplement under section [F579 of that Act] shall be disregarded for all purposes of corporation tax and income tax.
Textual Amendments
F1Words in s. 827(1) substituted (1.9.1994) by Value Added Tax Act 1994 (c. 23), s. 101(1), Sch. 14 para. 10(2)(a)
F2Words in s. 827(1)(a) substituted (1.9.1994) by Value Added Tax Act 1994 (c. 23), s. 101(1), Sch. 14 para. 10(2)(b)
F3Words in s. 827(1)(b)(c) substituted (1.9.1994) by Value Added Tax Act 1994 (c. 23), s. 101(1), Sch. 14 para. 10(2)(c)
F4S. 827(1B) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 7 para. 31
F5Words in s. 827(2) substituted (1.9.1994) by Value Added Tax Act 1994 (c. 23), s. 101(1), Sch. 14 para. 10(2)(d)
Marginal Citations
M1Source—1986 s.53.