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  3. How does HMRC assess sponsorship costs for tax purposes?
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  3. How does HMRC assess sponsorship costs for tax purposes?

How does HMRC assess sponsorship costs for tax purposes?

HMRC considers the commercial benefit to your business, looking at factors like negotiation, location relevance, exploring alternatives, and the impact on your business trade. 


Example: If you sponsor a national conference in your industry, held in a city where many potential clients are based, HMRC would likely view this as a reasonable business expense.

Updated on 23rd October 2023

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