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Dear sirs,
In specimen June 2015, section b, q6, the answers shows that gifts to customers (pens costing £40 each and displaying Naive Ltd’s name) is not included in the corporation tax computation. I though this will be included in the corporation tax computation since it is under £50 per person and it displays advertisement for business.Please advise.
I am not a tutor on this site.If you want a tutor to answer you should use the ask the tutor forum.Basically you are correct that it is a valid deduction.That fact means that it doesn’t have to be added back when trying to calculate adjusted trading profit for tax purposes.Unlike the gifts of hampers which being food do not qualify since they are toy company not a hamper company.This unacceptable expense for tax purposes must then be added back when calculating adjusted trading profit.
Oh I have posted this in the wrong forum section but thanks @mrjonbain
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