S54, S777 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), S1286, S1303 Corporation Tax Act 2009 (CTA 2009)

HMRC can raise interest and penalty charges in connection with VAT and pay VAT repayment supplements (similar to IT repayment supplements). S54 ITTOIA2005 provides that the following payments are not deductible in computing the profits of a trade:

(1)a penalty under any of S60 to S70 Value Added Tax Act 1994 (VATA 1994),

(2)a penalty under Sch24 Finance Act 2007 (FA 2007),

(3)a penalty under Sch41 Finance Act 2008 (FA 2008),

(4)interest payable under S74 or S85A VATA 1994,

(5)a surcharge under S59 VATA 1994.

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