There are several tax benefits available to companies making gifts to charity of money, shares, land, buildings, equipment or trading stock.
Businesses can get tax relief under the UK's Gift Aid scheme when they give money as either a single, one-off gift or as a regular donation, as these are simply deducted as a charge when calculating profit. Businesses do not deduct tax from the gift, and need simply to provide evidence for the Inland Revenue of the donation.
Giving certain shares, securities, buildings and land also attracts tax relief, in addition to the relief companies may be able to claim when calculating capital gains tax. A business cannot get tax relief for gifts of its own shares.
Please note there are different ways to maximise your tax relief if you are a sole trader or your business is a partnership.
For further information please contact us.