Paragraph 40

In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)—

“(1C)

Where a person is liable to make a payment by way of—

(a)

penalty under Part V of Schedule 5 to the Finance Act 1996 (landfill tax), or

(b)

interest under paragraph 26 or 27 of that Schedule,

the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.”