Subject to meeting certain conditions, where a company makes a cash donation to a charity, or donates certain assets to a charity (e.g. shares, land), a deduction is allowed against the company's total profits for the accounting period in which the donation is made (note: this rule is relaxed where the company is a 100% subsidiary of the charity). The amount of the deduction is equal to the value of the cash/asset donated.
Want to read more?
This content requires a Croner-i Tax and Accounting subscription.