4U.K.In section 827 of the Taxes Act 1988 (no deduction for penalties etc.), the following subsection shall be inserted after subsection (1C)—
“(1D)Where a person is liable to make a payment by way of—
(a)any penalty under any provision of Schedule 6 to the Finance Act 2000 (climate change levy),
(b)interest under paragraph 70 of that Schedule (interest on recoverable overpayments etc.),
(c)interest under any of paragraphs 81 to 85 of that Schedule (interest on climate change levy due and on interest), or
(d)interest under paragraph 109 of that Schedule (interest on penalties),
the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.”