Commentary

V7.430 Supply—business gifts

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.430 Supply—business gifts

Part V7 Tax planning | Commentary

V7.430 Supply—business gifts

An item is a gift when the donor is not obliged to give it and the recipient has provided no goods or services in return for receiving the gift.

A gift of goods can be made without accounting for output tax (and input tax still claimed on the purchase of the goods in question) if:

  1.  

    •     the cost to the donor of acquiring or producing the goods is less than £50, and

  2.  

    •     the gift is made in the course of business, eg gift to recognise loyal customers or hardworking staff, and

  3.  

    •     the total value of gifts

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