Tax deductible gifts

Here’s a quick summary of the tax treatment of different types of business gifts.

- Giving away free samples of your product is tax deductible.
- Gifts with a conspicuous advert of your business on it are tax deductible as long as they do not exceed £50 per person.
- However, gifts of food, alcohol, tobacco and vouchers are not allowable for tax even if below the £50 threshold.
- VAT can only be re-claimed on gifts if they cost you less than £50 (£58.75 inc VAT).