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HMRC internal manual

Business Income Manual

Specific deductions: subscriptions: charitable and political subscriptions

S34(1) Income Tax (Trading and Other Income) Act 2005, S54(1) Corporation Tax Act 2009

Subscriptions for general charitable purposes, and those to, for example, political parties are almost always made wholly or partly for non-trade purposes and should not be allowed as deductions in calculating the profits of a trade.

Where the trader has a direct trade connection with a charity or its objects, the allowance of a relatively small annual subscription may be allowed, provided that the subscription can reasonably be claimed as an expense incurred in earning profits.

Subscriptions to churches, chapels etc are normally inadmissible deductions, but may, in exceptional circumstances, be treated as admissible welfare expenditure (see BIM47070).

For certain charitable non-cash donations, see BIM45150 onwards. Gift Aid may also be relevant in some specific instances (see RE1830 to RE1841 for individuals and CTM09060 for companies).