Part 10General provisions
Chapter 2General calculation rules etc.
Crime-related payments
870Crime-related payments: non-trades and non-property businesses
1
This section—
a
applies for the purpose of calculating profits or other income charged to income tax, but
b
does not apply for the purpose of calculating the profits of a trade, profession or vocation or of a property business (but see subsection (4)).
2
No deduction is allowed for expenses incurred—
a
in making a payment if the making of the payment constitutes a criminal offence, or
b
in making a payment outside the United Kingdom if the making of a corresponding payment in any part of the United Kingdom would constitute a criminal offence in that part.
3
No deduction is allowed for expenses incurred in making a payment induced by a demand which constitutes—
a
the offence of blackmail under section 21 of the Theft Act 1968 (c. 60) (England and Wales),
b
the offence of extortion (Scotland), or
c
the offence of blackmail under section 20 of the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.)) (Northern Ireland).
4
Provision corresponding to that made by this section is made by—
a
section 55 (in relation to trades, professions and vocations), and
b
F1sections 272 and 272ZA (in relation to property businesses).