Good question and not as straight forwards as it sounds.
There is a strong likelihood that this would fail the wholly and exclusively test unless a strong business benefit can be shown from such sponsorship.
for information on the tax treatment of sponsorships refer to this link which is an HMRC index to other links :
http://www.hmrc.gov.uk/charities/casc/index.htm
Well, there goes your evening!
Fun reading Noola!
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
aaaaaahhhhhhh :/ interesting read however and I think it will come in handy to know this. I will have to find out if the boxing club is promoting the business as part of the sponsorship. Bookkeeping is an absolute minefield!
Hmmm....I think you need to define what the "sponsorship" if for?
Is it your logo or name on a shirt? (Advertising) Is it an advert in the clubs magazine? (Advertising) Is it just a donation to a local club? can always have a "Donation" Nominal Code. Will probably go down as miscellaneous expenses anyway. Is it for say you name read out before a fight? (Advertising)
You just need to take an different view of what that "donation" is actually used for and what you get for in return.
