My company has discounted our services to a local charity by £2,500, compared to the normal cost for our services. Can that discount be classed as a donation for tax purposes? 

Arthur Weller replies: 

If you look at the guidance at: www.gov.uk/tax-limited-company-gives-to-charity, you can see that a company can get relief for donations of: (a) money; (b) equipment or trading stock (items it makes or sells); (c) land, property or shares in another company (shares in your own company do not qualify); (d) employees (on secondment); and (e) sponsorship payments. But services are not in the list. I suggest that you invoice the charity the full £8,500 and then donate £2,500 cash to the charity.