Part 20General calculation rules
C1C2Chapter 1Restriction of deductions
Pt. 20 Ch. 1 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 92(4) (with s. 147, Sch. 17)
Business entertainment and gifts
1300C2Business gifts: exceptions
1
The prohibition in section 1298 on deducting, or bringing into account, expenses incurred in providing gifts does not apply in any of cases A, B, C and D.
2
Case A is where—
a
the gift is of an item which it is the company's business to provide, and
b
the item is given away in the ordinary course of the business in order to advertise to the public generally.
3
Case B is where the gift incorporates a conspicuous advertisement for the company unless—
a
the gift is food, drink, tobacco or a token or voucher exchangeable for goods, or
b
the cost of the gift to the company, together with any other gifts (except food, drink, tobacco or a token or voucher exchangeable for goods) given to the same person in the same accounting period, exceeds £50.
The Treasury may by order amend the sum for the time being specified in paragraph (b) so as to increase it.
4
Case C is where gifts are provided for employees of the company unless—
a
gifts are also provided for others, and
b
the provision of the gifts for the employees is incidental to the provision of gifts for the others.
5
Case D is where the gift is given to—
a
a charity,
b
the Historic Buildings and Monuments Commission for England, or
c
the Trustees of the National Heritage Memorial Fund.
Pt. 20 Ch. 1 applied by 1989 c. 26, s. 85(2BA) (as substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 348(4) (with Sch. 2 Pts. 1, 2))