CIRD12610 - Core computational rules: deductible debits: general matters and adjustments for tax purposes: disallowance of expenditure: criminal payments

FA02/SCH29/PARA112 (2)(b)

Exceptionally, debits otherwise deductible under Schedule 29 may arise in respect of expenditure within ICTA88/S577A. That is expenditure:

• in making a payment which constitutes a criminal offence, or
• in making a payment induced by blackmail or extortion.

Paragraph 112 (2)(b) ensures that debits of this nature are disallowed. The guidance at BIM43100 onwards should be applied in identifying these payments.