Tax-breaks for businesses who give

Tax breaks are available to all businesses but cash donations are treated differently according to whether the business is a company, sole trader and partnership.

For self-employed people (sole-traders) and partnerships donations should be treated the same as gift aid from individuals.

For partnerships this should be split equally between partners unless decided differently.

Companies can claim corporation tax relief for its cash donations which is worth up to 30% for the company.

Companies can also claim corporation tax relief on other forms of giving including

• Donation of land or buildings
• Donations of goods or equipment
• Donations of employees on loan
• Employee volunteering
• Sponsorship (in certain circumstances)
• Payroll giving

Even if land or buildings is sold as less than its market value to a charity the company can claim tax relief on the difference.

Tax relief can be sought for the modest cost of running a payroll giving scheme in a company

Organisations that want to inform companies of the benefits of giving can use the Treasury leaflet “A guide to tax incentives for corporate giving”. Charities can get more information from the Institute of Fundraising (IOF) guide “Making Giving Go Further” available free from IOF.