What is the rule for reclaiming input vat on giving handover gifts of bottles of champagne when selling cars to the public. They are less than £50, but don't include any advertising or corporate logos etc.
As usual the Inland Revenue website is pretty useless, and I am getting conflicting messages from various other websites.
I believe that vat on alcohol for business entertaining cannot be reclaimed, but are gifts different?
Some are saying that alcohol is specifically excluded and you can't reclaim Vat, and some say that there is no exclusion.
Please what is rule and can you point to the specific bit of legislation.