Section 47 | Business gifts: exceptions

(1)The prohibition in section 45 on deducting expenses incurred in providing gifts does not apply in any of cases A, B, C and D.

(2)Case A is where—

(a)the gift is of an item which it is the trader's trade to provide, and

(b)the item is given away in the ordinary course of the trade in order to advertise to the public generally.

(3)Case B is where the gift incorporates a conspicuous advertisement for the trader unless—

(a)the gift is food, drink, tobacco or a token or voucher exchangeable for goods, or

(b)the cost of the gift to the trader, together with any other gifts (except food, drink, tobacco or a token or voucher exchangeable for goods) given to the same person in the same tax year, exceeds £50.^F1

The Treasury may by order amend the sum for the time being specified in paragraph (b) so as to increase it.

(4)Case C is where gifts are provided for employees of the trader unless—

(a)gifts are also provided for others, and

(b)the provision of the gifts for the employees is incidental to the provision of gifts for the others.

(5)Case D is where the gift is given to—

(a)a charity,

(b)the Historic Buildings and Monuments Commission for England, or

(c)the Trustees of the National Heritage Memorial Fund.