Penalties [F1, interest and VAT surcharges] [F1and interest] U.K.
Textual Amendments
F1Words in s. 54 cross-heading substituted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 30; S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2
54Penalties [F2, interest and VAT surcharges] [F2and interest] U.K.
(1)In calculating the profits of a trade, no deduction is allowed for any penalty or interest mentioned in the first column of the following table.
(2)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 |
| [F3Interest under section 101 of FA 2009 in connection with sums required to be deducted under section 61 of FA 2004 (construction industry)] | |
| Penalty under any of sections 60 to 70 of VATA 1994 | Value added tax |
| [F4Interest under section 101 of FA 2009 in respect of an amount of value added tax] | |
| 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 |
| [F5Interest under section 60(8) of FA 1994 or paragraph 21 of Schedule 7 to FA 1994] | |
| Penalty under any provision of Part 5 of Schedule 5 to FA 1996 | Landfill tax |
| [F6Interest 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 [F7, 109 and 123(6)] of that Schedule | |
| Penalty under any provision of Part 2 of FA 2001 | Aggregates levy |
| Interest under [F8section 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 [F9to, FA 2001] | |
| Penalty under section 25 or 26 of FA 2003 | [F10Customs duties] |
| Penalty under any provision of Part 4 of FA 2003 | Stamp duty land tax |
| Interest under any provision of that Part | |
| [F11Penalty under Schedule 24 to FA 2007 | Various taxes and excise duties] |
| [F12Penalty under Schedule 41 to FA 2008 | Various taxes and excise duties] |
| [F13Penalty under Schedule 16 to F(No. 2)A 2017 | Various taxes] |
(3)[F14In calculating the profits of a trade, no deduction is allowed for any surcharge under section 59 of VATA 1994.]
Textual Amendments
F2Words in s. 54 heading substituted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 31(a); S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2
F3Words in s. 54(2) table substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order 2014 (S.I. 2014/1283), art. 1(1), Sch. para. 5
F4Words in s. 54(2) table substituted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 4(2)
F5Words in s. 54(2) 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. 438(3)
F6Words in s. 54(2) 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. 438(4)
F7Words in s. 54(2) 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. 438(5)
F8Words in s. 54(2) 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. 438(6)(a)
F9Words in s. 54(2) 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. 438(6)(b)
F10Words in s. 54(2) substituted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 154 (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
F11Words in s. 54(2) 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. 28
F12Words in s. 54(2) 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. 8
F13Words in s. 54(2) table inserted (16.11.2017) (with effect in accordance with Sch. 16 para. 62 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 16 para. 59
F14S. 54(3) omitted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 31(b); S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2