PART XIII MISCELLANEOUS SPECIAL PROVISIONS

C1CHAPTER VI OTHER PROVISIONS

Annotations:
Modifications etc. (not altering text)
C1

Pt 13 Ch. 6: ss. 573, 575 and 576 transposed to Pt. 13 Ch. 5A (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by Income Tax Act 2007 (c. 3), Sch. 1 paras. 117(3), 119(7), 120(7) (with Sch. 2)

Miscellaneous

577 Business entertaining expenses.

1

M1Subject to the provisions of this section—

a

no deduction shall be made in computing F2profits chargeable to F14corporation tax under F3. . . Schedule D for any expenses incurred in providing business entertainment, and such expenses—

F12i

shall not be included in computing any expenses of management in respect of which relief may be given under F15the Corporation Tax Acts; F13and

ii

shall not be brought into account under section 76 as expenses payable.F4F9. . .

b

F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

The expenses to which paragraph (a) of subsection (1) above applies include, in the case of F16any company, any sums paid F17by the company to, or on behalf of, or placed F17by the company at the disposal of F18an employee of the company exclusively for the purpose of defraying expenses incurred or to be incurred by him in providing business entertainment F11. . . .

4

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

For the purposes of this section “business entertainment” means entertainment (including hospitality of any kind) provided by F19a company, or by F20an employee of the company, in connection with a trade carried on by F21the company, but does not include anything provided by F22the company for bona fide F23employees of the company unless its provision for them is incidental to its provision also for others.

6

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

In this section—

a

any reference to expenses incurred in F5. . . providing entertainment includes a reference to expenses incurred in F5. . . providing anything incidental thereto;

b

references to a trade include references to any business F24or profession; and

c

references to F25a company's employees are references to persons employed by F26the company, directors of F27the company or persons engaged in the management of F27the company being for this purpose deemed to be persons employed by it.

8

This section shall apply in relation to the provision of a gift as it applies in relation to the provision of entertainment, except that it shall not by virtue of this subsection apply in relation to the provision for any person of a gift consisting of an article incorporating a conspicuous advertisement for the donor, being an article—

a

which is not food, drink, tobacco or a token or voucher exchangeable for goods; and

b

the cost of which to the donor, taken together with the cost to F28the donor of any other such articles given by F28the donor to that person in the same F29accounting period, does not exceed F7£50.

F88A

F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

M2Subsection (8) above shall not preclude the deduction, in computing F2profits under F3. . . Case I or II of Schedule D, of expenditure incurred in making a gift to a body of persons or trust established for charitable purposes only; and for the purposes of this subsection the Historic Buildings and Monuments Commission for England and the Trustees of the National Heritage Memorial Fund shall each be treated as such a body of persons.

10

M3Nothing in this section shall be taken as precluding the deduction of expenses incurred in F6. . . the provision by F31any company of anything which it is F32its trade to provide, and which is provided F33by the company in the ordinary course of that trade for payment or, with the object of advertising to the public generally, gratuitously.