BIM45071 | Specific deductions: entertainment: gifts: exceptions: free samples

S47 Income Tax (Trading and Other Income) Act 2005, S1300 Corporation Tax Act 2009

The cost of free samples given to the public for advertising those goods is deductible from trading profits. This is because the cost to a business of giving away its own goods for the purposes of advertising those goods is not business entertainment expenditure. For further information, see BIM45032.