BIM43126 | Specific deductions: crime (expenditure involving): Criminal payments: bribery convictions

S55 Income Tax (Trading and Other Income) Act 2005, s1304 Corporation Tax Act 2009

As described at BIM43125 no deduction is allowed for payments which constitute a criminal offence under the Bribery Act.

If a business has a criminal conviction for bribery the tax treatment of the bribes must be checked.

Deferred Prosecution Agreements

Serious Fraud Office investigations into bribery may be settled by deferred prosecution agreements. When a deferred prosecution agreement for bribery has been issued the tax treatment of the bribes must be checked.

If deductions have been claimed for payments identified as bribes in a deferred prosecution statement of facts please contact Business Profits for advice.

Legal costs

Detailed guidance on the treatment of legal costs is at BIM38525

If deductions have been claimed for legal costs associated with bribery, or as part of an investigation into bribery, please contact Business Profits for advice.