Can a company claim deductions for charity donations to a school attended by the director's children and grandchildren?
Arthur Weller replies:
Look at HMRC’s charities guidance. You can see that all three conditions are required for it to be a 'tainted donation', and Condition B requires that the main purpose of entering into the arrangements is for the donor, or someone connected to the donor, to receive a financial advantage directly or indirectly from the charity. It would seem to me that if it can be shown that full school fees are being paid for the school child, then there is no financial advantage being received.
Arthur Weller is just one of the tax advisers available through our Tax Insider consultancy service. He is a Chartered Tax Advisor (CTA) who operates his own tax consultancy, a member of the Chartered Institute of Taxation and also a qualified Certified Accountant.