Part 3 INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

Chapter 2 OTHER PROVISIONS

Other relieving provisions

73 Deductions for business gifts: yearly limit

1

Section 577 of the Taxes Act 1988 (prohibition on deduction of expenses in providing business entertainment or gifts) is amended as follows.

2

In subsection (8)(b) (under which gifts not amounting to more than £10 in any year are disregarded)—

F1a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

for “£10” substitute “£50”.

F23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

This section applies in relation to the year 2001-02 and subsequent years of assessment or, in the case of companies, in relation to accounting periods beginning on or after 1st April 2001.