{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-869",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-869.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/869",
  "kind": "section",
  "number": "869",
  "heading": "Penalties , interest and VAT surcharges and interest: non-trades etc.",
  "text": "(1) This section applies for the purpose of calculating profits or other income charged to income tax.\n(2) For this purpose “profits or other income” does not include the profits of—\n(a) a trade, profession, or vocation, or\n(b) a property business,\nbut see subsection (6).\n(3) No deduction is allowed for any penalty or interest mentioned in the first column of the following table.\n(4) This is the table—\nPenalty or interest\nDescription of tax, levy or duty\nInterest under any provision of Part 9 of TMA 1970\nIncome tax, capital gains tax and corporation tax\nInterest required to be paid by regulations made under section 71 of FA 2004 (construction industry)\nPenalty under any of sections 60 to 70 of VATA 1994\nValue added tax\nInterest under section 101 of FA 2009 in respect of an amount of value added tax\nPenalty under any of sections 8 to 11 of FA 1994\nExcise duties\nPenalty under any of paragraphs 12 to 19 of Schedule 7 to FA 1994\nInsurance premium tax\nInterest under section 60(8) of FA 1994 or paragraph 21 to Schedule 7 to FA 1994\nPenalty under any provision of Part 5 of Schedule 5 to FA 1996\nLandfill tax\nInterest under section 56(5) of, or paragraph 26 or 27 of Schedule 5 to, FA 1996\nPenalty under any provision of Schedule 6 to FA 2000\nClimate change levy\nInterest under any of paragraphs 70, 81 to 85 , 109 and 123(6) of that Schedule\nPenalty under any provision of Part 2 of FA 2001\nAggregates levy\nInterest under section 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 to, FA 2001\nPenalty under section 25 or 26 of FA 2003\nCustoms duties\nPenalty under any provision of Part 4 of FA 2003\nStamp duty land tax\nInterest under any provision of that Part\nPenalty under Schedule 24 to FA 2007\nVarious taxes and excise duties\nPenalty under Schedule 41 to FA 2008\nVarious taxes and excise duties\n(5) No deduction is allowed for any surcharge under section 59 of VATA 1994.\n(6) Provision corresponding to that made by this section is made by—\n(a) section 54 (in relation to trades, professions and vocations), and\n(b) sections 272 and 272ZA (in relation to property businesses).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "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"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/869",
    "retrieved_at": "2026-10-29T09:16:32.370392+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}