Part 20General calculation rules
C1C2Chapter 1Restriction of deductions
Pt. 20 Ch. 1 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 92(4) (with s. 147, Sch. 17)
Business entertainment and gifts
1299C2Business entertainment: exceptions
1
The prohibition in section 1298 on deducting, or bringing into account, expenses incurred in providing entertainment does not apply in either of cases A and B.
2
Case A is where—
a
the entertainment is of a kind which it is the company's business to provide, and
b
the entertainment is provided in the ordinary course of the business either for payment or free of charge in order to advertise to the public generally.
3
Case B is where the entertainment is provided for employees of the company unless—
a
the entertainment is also provided for others, and
b
the provision of the entertainment for the employees is incidental to its provision for the others.
Pt. 20 Ch. 1 applied by 1989 c. 26, s. 85(2BA) (as substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 348(4) (with Sch. 2 Pts. 1, 2))