You should only raise the possible application of ICTA88/S577A
(1A) if you find clear signs that it may be relevant.
An ICTA88/S577A (1A) disallowance may be easier to establish
than Section 577A (1) disallowance (
BIM43115 onwards). This is because
subsection (1A) payments do not involve a criminal offence by the
payer and so it may be easier to obtain agreement that a
disallowance is due even when the blackmailer is not brought to
justice. However, in some cases, similar problems of proof could
arise. For example, the payer may argue that payments were for
’security' services and no blackmail threat was made.
Seek advice from CT&VAT (Technical) at an early stage if
you are not sure whether a payment was induced by a blackmail
offence under UK law.
