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S45 Income Tax (Trading and Other Income) Act 2005, S1298 Corporation Tax Act 2009

Sporting or cultural events

»Ê¹ÚÌåÓýapp costs of sponsoring sporting, cultural or other events for the purpose of business promotion/publicity are not disallowable under the legislation. However, it is common for sponsors of such events to be entitled to a certain number of free tickets, private boxes or other benefits as part of the sponsorship package.

»Ê¹ÚÌåÓýapp cost of sponsorship is not allowable in full if the sponsor receives tickets or other benefits. You should normally accept a disallowance equal to the value of the tickets or other benefits received.

For further information on sponsorship expenditure, see BIM42555 - BIM42565.

In some cases the sponsor may also pay for additional events such as a dinner dance for members of the football club, or a private reception for certain theatre-goers. This will come within the normal definition of entertainment and the cost is disallowed under the legislation.