Section 869 Penalties , interest and VAT surcharges and interest: non-trades etc.F12

United Kingdom

(1)

This section applies for the purpose of calculating profits or other income charged to income tax.

(2)

For this purpose “profits or other income” does not include the profits of—

(a)

a trade, profession, or vocation, or

(b)

a property business,

but see subsection (6).

(3)

No deduction is allowed for any penalty or interest mentioned in the first column of the following table.

(4)

This is the table—

Penalty or interest	Description of tax, levy or duty
Interest under any provision of Part 9 of TMA 1970	Income tax, capital gains tax and corporation tax
Interest required to be paid by regulations made under section 71 of FA 2004 (construction industry)
Penalty under any of sections 60 to 70 of VATA 1994	Value added tax
F1Interest under section 101 of FA 2009 in respect of an amount of value added tax
Penalty under any of sections 8 to 11 of FA 1994	Excise duties
Penalty under any of paragraphs 12 to 19 of Schedule 7 to FA 1994	Insurance premium tax
F2Interest under section 60(8) of FA 1994 or paragraph 21 to Schedule 7 to FA 1994
Penalty under any provision of Part 5 of Schedule 5 to FA 1996	Landfill tax
F3Interest under section 56(5) of, or paragraph 26 or 27 of Schedule 5 to, FA 1996
Penalty under any provision of Schedule 6 to FA 2000	Climate change levy
Interest under any of paragraphs 70, 81 to 85 F4, 109 and 123(6) of that Schedule
Penalty under any provision of Part 2 of FA 2001	Aggregates levy
Interest under F5section 42(6) of, or any of paragraphs 5 to 9 of Schedule 5 to, paragraph 6 of Schedule 8 to and paragraph 5 of Schedule 10 F6to, FA 2001
Penalty under section 25 or 26 of FA 2003	F7Customs duties
Penalty under any provision of Part 4 of FA 2003	Stamp duty land tax
Interest under any provision of that Part
F8Penalty under Schedule 24 to FA 2007	Various taxes and excise duties
F9Penalty under Schedule 41 to FA 2008	Various taxes and excise duties

(5)

~~F10No deduction is allowed for any surcharge under section 59 of~~ ~~VATA~~ ~~1994.~~

(6)

Provision corresponding to that made by this section is made by—

(a)

section 54 (in relation to trades, professions and vocations), and

(b)

F11sections 272 and 272ZA (in relation to property businesses).

Annotations

Textual amendments

F1: Words in s. 869(4) 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), 4(4)
F2: Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(3)
F3: Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(4)
F4: Words in s. 869(4) table inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(5)
F5: Words in s. 869(4) table inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(6)(a)
F6: Words in s. 869(4) table substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 442(6)(b)
F7: Words in s. 869(4) 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. 155 (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)
F8: Words in s. 869(4) table added (1.4.2009) by The Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009 (S.I. 2009/571), art. 1(1), Sch. 1 para. 29
F9: Words in s. 869(4) table 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. 9
F10: S. 869(5) 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. 35(b); S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F11: Words in s. 869(6)(b) substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 38
F12: Words in s. 869 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. 35(a); S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3

Notes on Penalties , interest and VAT surcharges and interest

Textual amendments

F1: Words in s. 869 cross-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. 34; S.I. 2022/1278, reg. 2(3)(4)(b); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3