Income Tax (Trading and Other Income) Act 2005 section 870

Crime-related payments: non-trades and non-property businesses

Section 870 restricts deductions for payments connected with criminal activity in the context of non-trade and non-property business income, with a transitional rule for expenditure incurred before 1st April 2002.

• Section 870 prevents deductions for certain payments connected with criminal activities outside of trades and property businesses.
• The restriction in section 870(2)(b) does not apply to expenditure incurred before 1st April 2002.
• This transitional provision ensures that the rule only catches expenditure from 1st April 2002 onwards.
• Expenditure incurred before that date continues to be treated under the rules that applied at the time it was incurred.