Part 10General provisions

Chapter 2General calculation rules etc.

Penalties F12, interest and VAT surchargesF12and interest

Annotations:
Amendments (Textual)
F12

Words in s. 869 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. 34; S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2

869Penalties F13, interest and VAT surchargesF13 and interest: non-trades etc.

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

F3Interest 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

F1Interest 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

F4Interest 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 F8, 109 and 123(6) of that Schedule

 

Penalty under any provision of Part 2 of FA 2001

Aggregates levy

Interest under F7section 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 F2to, 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

 

F5Penalty under Schedule 24 to FA 2007

Various taxes and excise duties

F6Penalty under Schedule 41 to FA 2008

Various taxes and excise duties

5

F11No 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

F9sections 272 and 272ZA (in relation to property businesses).