Crime-related payments, i.e. payments made as a result of blackmail or extortion or constituting the commission of a criminal offence (e.g. bribes), are disallowed.

No deduction is allowed in calculating the profits of a trade for ‘losses not connected with or arising out of the trade’.

No deduction is allowed for debts except where the debt is bad, the debt is estimated to be bad or the debt is released as part of a statutory insolvency arrangement.

Many tax related penalties, interest and surcharges are disallowable when calculating trade profits for income tax purposes. As a corollary, any VAT repayment supplement (see ¶72220) is disregarded for all tax purposes.

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