Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Value Added Tax: business entertainment

The VAT borne on business entertainment expenditure is generally not to be deducted as input tax. For VAT, ‘business entertainment’ means, subject to certain exceptions, entertainment (including hospitality of any kind) provided by a taxable person in connection with a business carried on by him. You should ensure that the cost of any business entertainment disallowed in calculating taxable trade profits (see BIM45000 onwards) includes the amount of the VAT related to it.