Part 2

Trading income
Chapter 4

Trade profits: rules restricting deductions

Crime-related payments

Crime-related payments
55
1
In calculating the profits of a trade, 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.
2
In calculating the profits of a trade, 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).