# Finance Act 1994, Paragraph 31 In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1A)โ€” โ€œ(1B) Where a person is liable to make a payment by way ofโ€” (a) penalty under any of paragraphs 12 to 19 of Schedule 7 to the Finance Act 1994 (insurance premium tax), or (b) interest under paragraph 21 of that Schedule, the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.โ€ --- Source: https://www.legislation.gov.uk/ukpga/1994/9/schedule/7/paragraph/31 (the official version) Page: https://openlegislation.uk/finance-act-1994/schedule-7/paragraph-31 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.