Corporate Donation to Customer Charity

Can I give from my company to a charity that uses the company?

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I've read various material on gift aid and corporate donations, but I cannot find a clear to this question. Can my company safely donate to a charity from which a) it receives business, or b) when another company in which I am a shareholder receives business, and still claim tax relief? The business received is not a consequence of the donation in any way. In principle I do not see how the first (a) is any different to a charity claiming Gift Aid on a donation given by an employee, and the second (b) is even more detached, but I want to make sure.

EXAMPLES

Company A gives £5,000 to a charity from which it receives £25,000 of business each year, and claims tax relief.

Company B, in which I am 95% shareholder, gives £5,000 to a charity which gives business of £25,000 to Company A, in which I am a 50% shareholder.

 

Thanks for any pointers.

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By WhichTyler
29th May 2018 18:00

As long as they are not 'tainted' then there is no problem. Tainted = passes all three tests below
https://www.gov.uk/government/publications/charities-detailed-guidance-n...

Condition A - the donation to the charity and arrangements entered into by the donor are connected.
Condition B - the main purpose of entering into the arrangements is for the donor, or someone connected to the donor, to receive a financial advantage directly or indirectly from the charity.
Condition C - the donation isn’t made by a qualifying charity-owned company or relevant housing provider linked with the charity to which the donation is made.

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Replying to WhichTyler:
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By sutherland
29th May 2018 21:32

Thank you. That's helpful. Our donations wouldn't even pass one of the tests far less all three.

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