BIM43100 - Specific deductions: crime (expenditure involving): overview & contents
Payments made by a trader are deductible in computing the profits of the trade if they are:
- not capital (see BIM35000 onwards), and
- they are made wholly and exclusively for the purposes of the trade (see BIM37000 onwards), and
- they are not disallowed by a specific statutory rule.
ICTA88/S577A disallows expenditure involving crime - criminal payments and blackmail and extortion.
Meaning of criminal payment
In this guidance chapter the phrase at ICTA88/S577A (1)
“no deduction shall be made for any expenditure incurred
(subsection (a)) in making a payment the making of which
constitutes the commission of a criminal offence” has been
abbreviated to “criminal payment”.
The pages listed below describe the legislation and how it
works:
| ICTA88/S577A | |
| BIM43101 | Introduction |
| BIM43105 | Detail of the legislation |
| BIM43110 | Accruals |
| ICTA88/S577A (1) | |
| BIM43115 | Criminal payments: scope |
| BIM43120 | Criminal payments: Prevention of Terrorism Acts |
| BIM43125 | Criminal payments: corrupt payments as a criminal offence |
| BIM43130 | Criminal payments: Public Bodies Corrupt Practices Act 1889 |
| BIM43135 | Criminal payments: Prevention of Corruption Act 1906 |
| BIM43140 | Criminal payments: Prevention of Corruption Act 1916 |
| BIM43145 | Criminal payments: territorial aspects |
| BIM43150 | Criminal payments: jurisdiction and nationality |
| BIM43155 | Criminal payments: handling of cases |
| ICTA88/S577A (1A) | |
| BIM43160 | Blackmail and extortion: overview |
| BIM43165 | Blackmail and extortion: territorial limitations |
| BIM43170 | Blackmail and extortion: no criminal intent necessary |
| BIM43175 | Blackmail and extortion: alternative basis for disallowance |
| BIM43180 | Blackmail and extortion: examples |
| BIM43185 | Blackmail and extortion: handling of cases |
Intangible Assets
In relation to expenditure by companies in respect of intangible assets incurred after 31 March 2002 see CIRD12610.
Contact with CT&VAT
Because of the nature of the legislation and the complexity of law relating to such criminal offences you should contact CT&VAT (Technical) at an early stage if you discover payments within ICTA88/S577A.
