What are the exceptions to the business gifts deduction rule under CTA 2009 section 1300?

Section 1300 provides four exceptions: gifts of the company's own products given to advertise to the public (Case A), branded gifts under £50 per recipient per accounting period excluding food, drink, tobacco or vouchers (Case B), gifts exclusively for employees (Case C), and gifts to charities or heritage bodies (Case D).

What is the £50 limit for branded business gifts under Case B of section 1300?

Under Case B, gifts carrying a conspicuous company advertisement are deductible provided the total cost of such branded gifts given to the same recipient in the same accounting period does not exceed £50. The Treasury has the power to increase this threshold by order. Food, drink, tobacco and vouchers are excluded regardless of value.

Are food and drink business gifts tax deductible under United Kingdom corporation tax law?

Food, drink, tobacco and vouchers exchangeable for goods are specifically excluded from the Case B branded gifts exception under section 1300. Even if such items carry the company's branding and fall within the £50 limit, their cost is not deductible. They may only qualify under another exception, such as Case A for samples.

When does the employee gifts exception under Case C of section 1300 not apply?

The Case C exception does not apply if gifts to employees are merely incidental to a wider gift-giving exercise primarily benefiting non-employees. For example, if a company gives gifts to clients and includes some employees as part of the same exercise, the employee gifts would not qualify because they are incidental to the provision for others.

Corporation Tax Act 2009 section 1300

Business gifts: exceptions

Section 1300 sets out four exceptions where the general prohibition on deducting expenses for business gifts does not apply.

Gifts of items the company sells, given away in the ordinary course of business to advertise to the public generally, are deductible (Case A)
Gifts carrying a conspicuous company advertisement are deductible, provided they are not food, drink, tobacco or vouchers, and the total cost of such gifts to the same person in the same accounting period does not exceed £50 (Case B)
Gifts provided exclusively for the company's own employees are deductible, unless gifts are also given to non-employees and the employee gifts are merely incidental to those (Case C)
Gifts made to charities, the Historic Buildings and Monuments Commission for England, or the Trustees of the National Heritage Memorial Fund are deductible (Case D)

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