Chapter 4 - 2.5 - Subscriptions and Donations

Question 1

Are trade or professional association subscriptions allowable or disallowable and why?

Answer 1

Normally allowable, since they will be made wholly and exclusively for the purposes of trade

Question 2

What does the treatment of a donation depend on?

Answer 2

The nature of the organisation to which the sole trader is making the donation

Question 3

Which donations are allowable?

Answer 3

• Small donations to local charities
• Gifts of stock or assets to local charities or schools are allowable

Question 4

Which donations are disallowable?

Answer 4

• Donations to national charities are disallowable but tax relief may be available through the gift aid scheme
• Subscriptions and donations to political parties