Section 1300 — Corporation Tax Act 2009: Business gifts: exceptions

Business gifts: exceptions 1300 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.