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S47 Income Tax (Trading and Other Income) Act 2005, S1300 Corporation Tax Act 2009

Gifts carrying a conspicuous advertisement for the trader

Gifts, which contain a conspicuous advertisement for the trader are generally allowed by the above legislation.

However, expenditure of this kind is not allowable if:

• the gift is food, drink, tobacco or a token or voucher exchangeable for goods, or
• the cost of the gift, together with the cost of any other gifts (except food, drink, tobacco or a token or voucher exchangeable for goods) to the same recipient in the relevant tax period, exceeds £50.

»Ê¹ÚÌåÓýapp relevant tax period is the tax year for unincorporated businesses and the accounting period for companies.

Common examples of allowable gifts are diaries, pens and mouse mats. »Ê¹ÚÌåÓýapp advertisement should be on the gift itself, and not just on the wrapping.