No, I wasn't being "self righteous" time traveller, that is why I specified "time element of the contract". I appreciate that the poster was not suggesting a general breach of contract, since they had settled the financial penalty, and wondered if they might be able to claim tax relief on this penalty.
As with any contract, it is usually too late to start complaining about the terms after you have entered into them. Whether you like my answer or not, it is still not allowable.