Section 1304 | Crime-related payments

(1)In calculating income from any source for corporation tax purposes, no deduction is allowed for any expenses to which subsection (4) or (5) applies.

(2)No deduction is allowed under section 1219 (expenses of management of a company's investment business) for any expenses to which subsection (4) or (5) applies.

(3)Expenses to which subsection (4) or (5) applies are not to be regarded as constituting ordinary BLAGAB management expenses of a company for the purposes of section 76 of FA 2012.^F1

(4)This subsection applies to 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.

(5)This subsection applies to 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).