(1)This section applies for the purpose of calculating profits or other income charged to income tax.
(2)For this purpose “profits or other income” does not include the profits of—
(a)a trade, profession, or vocation, or
(b)a property business,
but see subsection (6).
(3)No deduction is allowed for any penalty or interest mentioned in the first column of the following table.
(4)This is the table—
| Penalty or interest | Description of tax, levy or duty |
|---|---|
| Interest under any provision of Part 9 of TMA 1970 | Income tax, capital gains tax and corporation tax |
| Interest required to be paid by regulations made under section 71 of FA 2004 (construction industry) | |
| Penalty under any of sections 60 to 70 of VATA 1994 | Value added tax |
| Interest under section 74 [F1or 85A] of VATA 1994 | |
| Penalty under any of sections 8 to 11 of FA 1994 | Excise duties |
| Penalty under any of paragraphs 12 to 19 of Schedule 7 to FA 1994 | Insurance premium tax |
| [F2Interest under section 60(8) of FA 1994 or paragraph 21 to Schedule 7 to FA 1994] | |
| Penalty under any provision of Part 5 of Schedule 5 to FA 1996 | Landfill tax |
| [F3Interest under section 56(5) of, or paragraph 26 or 27 of Schedule 5 to, FA 1996] | |
| Penalty under any provision of Schedule 6 to FA 2000 | Climate change levy |
| Interest under any of paragraphs 70, 81 to 85[F4, 109 and 123(6)] of that Schedule | |
| Penalty under any provision of Part 2 of FA 2001 | Aggregates levy |
| Interest under [F5section 42(6) of, or] any of paragraphs 5 to 9 of Schedule 5 to, paragraph 6 of Schedule 8 to and paragraph 5 of Schedule 10 [F6to, FA 2001] | |
| Penalty under section 25 or 26 of FA 2003 | [F7Customs, export and import] [F7Customs duties] |
| Penalty under any provision of Part 4 of FA 2003 | Stamp duty land tax |
| Interest under any provision of that Part | |
| [F8Penalty under Schedule 24 to FA 2007 | Various taxes and excise duties] |
| [F9Penalty under Schedule 41 to FA 2008 | Various taxes and excise duties] |
(5)No deduction is allowed for any surcharge under section 59 of VATA 1994.
(6)Provision corresponding to that made by this section is made by—
(a)section 54 (in relation to trades, professions and vocations), and
(b)[F10sections 272 and 272ZA] (in relation to property businesses).
Textual Amendments
F1Words in s. 869(4) table inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(2)
F2Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(3)
F3Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(4)
F4Words in s. 869(4) table inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(5)
F5Words in s. 869(4) table inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(6)(a)
F6Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(6)(b)
F7Words in s. 869(4) table substituted (13.9.2018 for specified purposes) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 155
F8Words in s. 869(4) table added (1.4.2009) by The Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009 (S.I. 2009/571), art. 1(1), Sch. 1 para. 29
F9Words in s. 869(4) table added (1.4.2010) by The Finance Act 2008 (Penalties for Errors and Failure to Notify etc) (Consequential Amendments) Order 2010 (S.I. 2010/530), art. 1, Sch. para. 9
F10Words in s. 869(6)(b) substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 38