Tax when your limited company gives to charity

7. How to claim

There are different ways to claim tax relief depending on the type of donation you make.

Deduct from your profits

Claim relief in the Company Tax Return that covers the accounting period during which you made the donation or sale if you have:

  • donated money
  • given or sold land, property or shares

Enter the total value of your donations in the ‘Qualifying donations’ box of the ‘Deductions and Reliefs’ section of your tax return.

There are special rules for working out the value of your donation if you give or sell land, property or shares to a charity.

Deduct as business expenses

Deduct costs as normal business expenses in your company’s annual accounts if you have:

  • seconded employees
  • sponsored a charity

Claim capital allowances

Claim capital allowances on the cost of equipment you donate in your company’s annual accounts.

If you donate more than your profit

The most you can deduct is the amount that reduces your company’s profits to zero.

If you donate more than your total profits you can’t:

  • declare trading losses on your tax return
  • carry over any remaining amount to your next tax return