Core computational rules: deductible debits: general matters and adjustments for tax purposes: disallowance of expenditure: criminal payments
Exceptionally, debits otherwise deductible under Part 8 may arise in respect of expenditure within CTA09/S1304. That is expenditure:
- in making a payment which constitutes a criminal offence, or
- in making a payment induced by blackmail or extortion.
Section 865 (3)(c) ensures that debits of this nature are disallowed. The guidance at BIM43100 onwards should be applied in identifying these payments.