Section 1304 — Corporation Tax Act 2009: Crime-related payments

Crime-related payments 1304 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.

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).