Tax when your limited company gives to charity

2. Donating money

Your limited company can pay less Corporation Tax when it gives money to a charity or community amateur sports club (CASC).

Deduct the value of the donations from your total business profits before you pay tax.

Payments that don’t qualify

You can’t deduct payments that:

  • are loans that will be repaid by the charity
  • are made on the condition that the charity will buy property from your company or anyone connected with it
  • are a distribution of company profits (eg dividends)

If you’re given something in return

Any benefits you’re given in return for your donation (eg tickets to an event) must be below a certain value.

Donation amount Maximum value of benefit
Up to £100 25% of the donation
£101 - £1,000 £25
£1,001 and over 5% of the donation (up to a maximum of £2,500)

This applies to benefits given to any person or company connected with your company, including close relatives.

If you get a benefit that’s related to the company your donation qualifies as a sponsorship payment.