Section 1299 | Business entertainment: exceptions

(1)The prohibition in section 1298 on deducting, or bringing into account, expenses incurred in providing entertainment does not apply in either of cases A and B.

(2)Case A is where—

(a)the entertainment is of a kind which it is the company's business to provide, and

(b)the entertainment is provided in the ordinary course of the business either for payment or free of charge in order to advertise to the public generally.

(3)Case B is where the entertainment is provided for employees of the company unless—

(a)the entertainment is also provided for others, and

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