Gifts of equipment, trading stock or secondment of employees
Equipment
If your business (sole trader, partnership or company) makes a gift to a UK charity of plant, machinery or equipment, used in the course of your normal trading activities, you can treat their disposal as being at nil value (rather than market value) in your capital allowances computation. As a result, your business will get full capital allowances in respect of the gifted equipment – equal to its cost.
Trading stock
If you’re a business (sole trader, partnership or company) and you make a gift to a UK charity of goods, manufactured or sold as part of your normal trading activities, you can claim the cost of those goods in the business accounts. Nothing is included as a trading receipt so you will get full relief for the cost of those goods against your taxable profit.
Secondment of employees
You can treat the secondment of employees to a UK charity as a legitimate business expense. If your business continues to pay that person you can deduct the cost (wages and expenses) of employing them as if they continued to work for you.
You should continue to operate PAYE on their salary.
