BIM45000 - Specific deductions: entertainment: introduction and contents
With certain exceptions, expenditure on business entertainment or gifts is not allowable as a deduction against profits, even if it is a genuine expense of the trade or business. This includes expenditure by:
- Individuals, partnerships and companies carrying on a trade, profession or vocation.
- Individuals, partnerships and companies carrying on a property business.
- Investment companies.
- Employees and directors (in certain circumstances).
- Any other person who carries on a trade or business.
Assets used for the purpose of business entertainment do not
qualify for capital allowances.
The legislation is at ICTA88/S577. Further guidance can be
found as follows:
- property businesses - PIM2000 onwards,
- investment companies CTM08430,
- capital allowances CA27200,
- expenditure within the corporate intangibles regime CIRD12580.
The guidance on business entertainment expenditure is arranged as follows:
| BIM45005 | History |
| BIM45010 | What is business entertainment? |
| BIM45011 | Meaning of business entertainment: judicial guidance |
| BIM45012 | Meaning of business entertainment: hospitality provided free of charge |
| BIM45013 | Meaning of business entertainment: contractual obligation |
| BIM45014 | Meaning of business entertainment: no hospitality if sufficient ‘quid pro quo' |
| BIM45020 | Expenditure which is not allowable |
| BIM45025 | Travelling costs |
| BIM45030 | Exceptions: provided in the normal course of trade for payment |
| BIM45031 | Exceptions: normal course of trade for payment: judicial guidance |
| BIM45032 | Exceptions: normal course of trade for purpose of advertising to the public |
| BIM45033 | Exceptions: entertainment of employees |
| BIM45034 | Exceptions: entertainment of employees: meaning of incidental |
| BIM45040 | Entertaining by employees |
| BIM45045 | Meals provided for non-employees |
| BIM45046 | Accommodation provided for non-employees |
| BIM45047 | Training courses |
| BIM45050 | Promotional events |
| BIM45055 | Sponsorship |
| BIM45060 | Expenditure paid to specialist providers: entertainment providers |
| BIM45061 | Expenditure paid to specialist providers: mixed services |
| BIM45062 | Expenditure paid to specialist providers: example |
| BIM45065 | Gifts: overview |
| BIM45070 | Gifts: exceptions: small gifts |
| BIM45071 | Gifts: exceptions: free samples |
| BIM45072 | Gifts: exceptions: gifts to charities |
| BIM45075 | Prizes |
| BIM45080 | Sales incentive schemes |
| BIM45085 | Sales promotion schemes |
| BIM45090 | Prizes and incentives: tax treatment of recipient |
