Remember that before you consider the application of Section 336
ITEPA 2003 to entertainment expenses incurred by an employee or
office holder you must first satisfy yourself that Section 356 does
not prohibit a deduction (see
EIM32565).
In cases where a deduction is requested for entertainment
provided at the employee's own home, limit any deduction to the
additional outlay on food, drink or other
entertainment. In cases where a deduction is due, expenditure in
respect of the employee's spouse or partner can normally be
admitted. But do not allow costs relating to other members of the
family or personal guests whose presence cannot be justified by
reasons directly connected with the individual's employment.
Expenditure at living accommodation provided by the employer
should be dealt with along the same lines.
