Payments made by a trader are deductible in computing the profits of the trade if they are:
ICTA88/S577A disallows expenditure involving crime - criminal payments and blackmail and extortion.
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 |
In relation to expenditure by companies in respect of intangible assets incurred after 31 March 2002 see CIRD12610.
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.
