PART XIII MISCELLANEOUS SPECIAL PROVISIONS
C1CHAPTER VI OTHER PROVISIONS
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
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
b
references to a trade include references to any business F24or profession; and
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
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.
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)