Tax when your limited company gives to charity
Your limited company pays less Corporation Tax when it gives the following to charity:
- equipment or trading stock (items it makes or sells)
- land, property or shares in another company (shares in your own company don’t qualify)
- employees (on secondment)
- sponsorship payments
You can claim tax relief by deducting the value of your donations from your total business profits before you pay tax.
There are different rules for sole traders and partnerships.