Paragraph 3

The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In section 827 (penalties and interest not allowed as deductions for tax purposes), after subsection (1F) insert—

“(1G)

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

(a)

any penalty under Part 4 of the Finance Act 2003 (stamp duty land tax), or

(b)

interest under any provision of that Part,

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