Tax when your limited company gives to charity
Donating money
Your limited company can pay less Corporation Tax when it gives money to a charity or community amateur sports club (CASC).
Deduct the value of the donations from your total business profits before you pay tax.
Payments that don鈥檛 qualify
You can鈥檛 deduct payments that:
- are loans that will be repaid by the charity
- are made on the condition that the charity will buy property from your company or anyone connected with it
- are a distribution of company profits (eg dividends)
If you鈥檙e given something in return
Any benefits you鈥檙e given in return for your donation (eg tickets to an event) must be below a certain value.
| Donation amount | Maximum value of benefit |
|---|---|
| Up to 拢100 | 25% of the donation |
| 拢101 - 拢1,000 | 拢25 |
| 拢1,001 and over | 5% of the donation (up to a maximum of 拢2,500) |
This applies to benefits given to any person or company connected with your company, including close relatives.
If you get a benefit that鈥檚 related to the company your donation qualifies as a sponsorship payment.