Tax Deductible Gifts

Tax Deductible Gifts

what gifts are tax deductible through my company?

Generally business gifts to customers are not tax deductible as they are seen as entertaining costs.



If the gift costs less than £50 and includes a conspicuous advertisement for your company or brand, then this should qualify for tax relief. BUT there are some more conditions as follows:

• The gift must not consist of food, drink, tobacco or an exchangeable voucher.

• The advertising must be on the gift itself and not just on the packaging.

• Gifts must not exceed a total value of £50 to any one customer during the financial year.

  • If the gift is one of your products and given during the ordinary course of business to advertise to the public generally e.g. products you would usually give as a free sample.

In some circumstances a gift can be included as a tax-deductible expense.

Want to know the best way to deduct tax from your profit?

  • If an item is classified as part of the sale e.g. offered if the customer orders goods to a certain value- the value of the gift would be deducted as a discount.
  • If your business donates to a registered charity then this will be tax allowable.
  • Gifts to employees may be tax deductible, however the rules for this can be complex. 
  • For more information and advice on this subject contact Woods Russell.


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