73Deductions for business gifts: yearly limit
(1)Section 577 of the Taxes Act 1988 (prohibition on deduction of expenses in providing business entertainment or gifts) is amended as follows.
(2)In subsection (8)(b) (under which gifts not amounting to more than £10 in any year are disregarded)—
(a)for “year” substitute “relevant tax period”, and
(b)for “£10” substitute “£50”.
(3)After that subsection insert—
“(8A)In subsection (8)(b) “relevant tax period” means—
(a)for the purposes of corporation tax, an accounting period;
(b)for the purposes of income tax—
(i)for a year of assessment in relation to which sections 60 to 63 apply and give a basis period, that basis period;
(ii)in any other case, a year of assessment.”.
(4)This section applies in relation to the year 2001-02 and subsequent years of assessment or, in the case of companies, in relation to accounting periods beginning on or after 1st April 2001.