corporate giving

corporate giving

Didn't find your answer?

Can a limited company give money away and get corporation tax relief for example to a local group say PTA who are not a charity so that they can buy a scooter rack. Or the local council for specific use in the area near to the limited company,say as a donation to local public gardens.  Could this be called sponsorship, the only advertising would be thanks in the local paper.  I have looked at hmrc website and it is not really helpful

Replies (3)

Please login or register to join the discussion.

By Anthony.Evans82
09th Jul 2012 19:48

If it is a donation....

It may be helpful if you tell us what you are trying to achieve from the answer.

One of the important points to remember is that there is a definite definition of Charity in the eyes of HMRC and a 'donation' whether it be of a restricted or unrestricted nature will only be classed as a donation if it is to a Community Amateur Sports Club (CASC) or registered Charity.

Sponsorship of a private Company (i.e. in the private sector with the intention of turning a profit) is different.

If you elaborate, maybe I can too :)

 

Ant

Thanks (0)
By Steve Kesby
09th Jul 2012 20:30

Not just registered charities

Assuming your PTA isn't for a profit-making school, it will be a charity; it's purpose is the advancement of education and is for the public benefit. It's likely to be exempt from registration with the Charities Commission though.

As such any donation to it will be eligible for Charitable Donations Relief under Part 6 of CTA 2010, provided the requirements are met (s.191), principally that there aren't associated benefits. There's no requirement that the charity be a registered charity; just that it's a charity.

A local authority though isn't a charity, so a donation to the local authority won't qualify.

Taking your local public gardens example though, it is possible that there's a separate "Friends of..." organisation, which may then well be a charity, and any donation to that association would then qualify.

Thanks (0)
Replying to RobertD:
avatar
By chancewind
10th Jul 2012 09:02

Thank you Steve, the school is a normal public school.  The gardens do have a friends society but are not a reg. charity, but do raise their own funds to maintain the gardens.  No one on the ltd company (by Guarantee) get any benefit other than as members of the public.  We are currently trying to amend our articles as we are a non profit org. whose surplus profits go back to the community, charity com. say we are not a charity in our own right.  Hmrc say we are trading at the moment and want their share!.  They told me gifts to charity are not allowable which i know is wrong but i want to be sure of exactly what would count.  Typically we give to local school, playschool (reg. charity), football and cricket clubs for under 15's(not reg as charity or company, sea scouts, local zoo (reg charity). We give away from £1000 to £2000 per year back to the local community. Any other help would be appreciated.

Thanks (0)