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).