{
  "url": "https://openlegislation.uk/corporation-tax-act-2009/section-1303",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2009/section-1303.json",
  "legislation": "ukpga/2009/4",
  "legislation_title": "Corporation Tax Act 2009",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2009",
  "path": "section/1303",
  "kind": "section",
  "number": "1303",
  "heading": "Penalties, interest and VAT surcharges and interest",
  "text": "(1) In calculating profits for any corporation tax purpose, no deduction is allowed for any penalty or interest mentioned in the first column of the following table.\n(2) This is the table—\nPenalty or interest\nDescription of tax, levy or duty\nPenalty under any of sections 60 to 70 of VATA 1994\nValue added tax\nInterest under section 101 of FA 2009 in respect of an amount of value added tax\nPenalty under any of sections 8 to 11 of FA 1994\nExcise duties\nPenalty under any of paragraphs 12 to 19 of Schedule 7 to FA 1994\nInsurance premium tax\nInterest under paragraph 21 of that Schedule\nPenalty under any provision of Part 5 of Schedule 5 to FA 1996\nLandfill tax\nInterest under paragraph 26 or 27 of that Schedule\nPenalty under any provision of Schedule 6 to FA 2000\nClimate change levy\nInterest under any of paragraphs 70, 81 to 85 and 109 of that Schedule\nPenalty under any provision of Part 2 of FA 2001\nAggregates levy\nInterest under any of paragraphs 5 to 9 of Schedule 5 to, paragraph 6 of Schedule 8 to and paragraph 5 of Schedule 10 to FA 2001\nPenalty under section 25 or 26 of FA 2003\nCustoms duties\nPenalty under any provision of Part 4 of FA 2003\nStamp duty land tax\nInterest under any provision of that Part\nInterest under section 101 of FA 2009 in connection with sums required to be deducted under section 61 of FA 2004 (construction industry)\nPenalty under Schedule 24 to FA 2007\nVarious taxes and excise duties\nPenalty under Schedule 41 to FA 2008\nVarious taxes and excise duties\nPenalty under Schedule 16 to F(No. 2)A 2017\nVarious taxes\n(3) In calculating profits for any corporation tax purpose, no deduction is allowed for any surcharge under section 59 of VATA 1994.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 1303(2) table substituted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 5(3)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 1303(2) substituted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 157 (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 1303(2) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order 2014 (S.I. 2014/1283), art. 1(1), Sch. para. 6"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 1303(2) added (1.4.2010) by The Finance Act 2008 (Penalties for Errors and Failure to Notify etc) (Consequential Amendments) Order 2010 (S.I. 2010/530), art. 1, Sch. para. 10"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 1303(2) table inserted (with effect in accordance with Sch. 16 para. 62 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 16 para. 60"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 1303(3) omitted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 36(b); S.I. 2022/1278, reg. 2(3)(4)(c); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 1303 heading substituted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 36(a); S.I. 2022/1278, reg. 2(3)(4)(c); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Pt. 20 Ch. 1 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 92(4) (with s. 147, Sch. 17)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/4/section/1303",
    "retrieved_at": "2026-10-29T09:11:19.560467+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}