Expenditure shown in the business accounts as ‘marketing’ may for tax purposes fall within the meaning of ‘entertaining’, in which case a deduction may well not be available. Care should be taken when preparing tax computations to check whether the expenditure needs to be disallowed on the grounds that it is ‘hospitality of any kind’: see ¶211-525.

If publicity expenditure is just one part of a package of entertainment, then nearly all of the expenditure will be disallowed. HMRC illustrate the distinctions that arise as follows (at BIM 45050):

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