# Finance Act 1996, Paragraph 40 In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1B)โ€” โ€œ(1C) Where a person is liable to make a payment by way ofโ€” (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.โ€ --- Source: https://www.legislation.gov.uk/ukpga/1996/8/schedule/5/paragraph/40 (the official version) Page: https://openlegislation.uk/finance-act-1996/schedule-5/paragraph-40 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.