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Donation to unregistered charity.

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One of our client made a donation to charity. I asked for charity registration number with HMRC and they told me it is not registered yet. can I take as allowable expenses and reduce corporation tax accordingly.

 

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RLI
By lionofludesch
29th May 2020 15:45

I vote no.

Unless you can show that the business benefited in some way - perhaps through publicity - in which case, you may or may not be able to justify it as a wholly and exclusively expense of the trade.

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By avan ali
29th May 2020 15:49

Many thanks, he claims that it is wholly and exclusively for the purpose of trade but my point is the charity is unregistered charity.

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RLI
By lionofludesch
29th May 2020 15:56

OK - well - let me put it another way.

You're flogging a dead oss as a charitable donation to something that's not a charity.

But you may be able to justify it as a w&e expense.

Or may not. There's not enough information to say. "Director says it's for the trade" isn't enough. "Director got ¼ page coverage in the local paper" might be.

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By Accountant A
15th Jun 2020 18:28

ilycl

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By avan ali
29th May 2020 16:24

Many thanks for your reply, it is a gift with no expectation to get any kind of benefit from the charity. My point is the donation to an unregistered charity even if wholly and exclusively for the purpose of trade can it be taken as allowable expense.

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Replying to avan ali:
RLI
By lionofludesch
29th May 2020 16:41

avan ali wrote:

Many thanks for your reply, it is a gift with no expectation to get any kind of benefit from the charity. My point is the donation to an unregistered charity even if wholly and exclusively for the purpose of trade can it be taken as allowable expense.

If the gift is with no expectation of benefit from the charity, in what way is it wholly and exclusively for the purposes of the trade ?

It might be - but there's nothing in your posts to suggest that it is, other than a bland assertion that the director says it is.

If you don't want to disclose, that's fine, but you'll have to make up your own mind.

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By Accountant A
15th Jun 2020 18:31

oug

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By avan ali
29th May 2020 16:27

Than you, so if the company donate to an unregistered charity in the UK then we cant take it as allowable expenses. right?

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By WhichTyler
31st May 2020 08:58

No. I t may be an accounting expense, but would be added back in the tax comp, and is not eligible for Gift Aid relief

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By avan ali
29th May 2020 16:27

Than you, so if the company donate to an unregistered charity in the UK then we cant take it as allowable expenses. right?

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By Tax Dragon
31st May 2020 10:16

You do know I hope that, generally, a donation to a registered charity is not an allowable expense.

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By Justin Bryant
29th May 2020 16:35

What case law/legislation that says it has to be a registered charity (I'm not saying it doesn't have to be) e.g. EU charities are not registered with the UK charity commission but they should be OK.

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By Accountant A
15th Jun 2020 18:28

iyc

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Hallerud at Easter
By DJKL
31st May 2020 11:21
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