141 Expenditure involving crime.U.K.
(1)Section 577A of the Taxes Act 1988 (certain expenditure involving crime not to be deducted and not to be included in expenses of management) shall be amended as follows.
(2)After subsection (1) there shall be inserted—
“(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.”
(3)In subsection (2) for “Such expenditure” there shall be substituted “ Any expenditure mentioned in subsection (1) or (1A) above ”.
(4)This section shall apply in relation to expenditure incurred on or after 30th November 1993.