Chapter BIM43180

Published date22 November 2013
Record NumberBIM43180
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

A deduction for a payment induced by blackmail or extortion may be denied where, for example:

  • ransom is paid by an employer to obtain the release of a kidnapped employee,
  • payments are made by businesses to buy off threats to damage their premises or to poison food, medicine etc.

However, subject to the disallowance of payments which are incidental to the payment of the blackmail itself (see BIM43101), other expenses arising out of blackmail may be allowable. For example, normal principles will usually apply to the extra cost of:

  • ...

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