Monetary Donations From Companies

When your company donates to the Staffordshire Community Foundation you can claim tax relief.  The following information is intended only as a guide for companies who choose to donate to us.  Whilst it is intended to ensure this page stays up to date you should always consult your accountant, tax advisor or see the HMRC website to ensure that you are aware of any changes in legislation or benefits.  The last revision of this page was made in February 2013.  For more information please see the HMRC website here.

Claiming Corporation Tax relief on gifts to charity

Financial donations should be paid gross, before any tax deductions are applied.  Any donation is deductible from the profits of your business when calculating the amount of Corporation Tax that you must pay.

Donations that don’t qualify for Corporation Tax relief

You will be unable to claim tax relief on your donation if it is;

  • a donation that you want to be repaid by us
  • a donation where you have received a significant benefit in return
  • a donation that must be used to buy goods or services from your company, (but please see the section on donations of goods or services)
  • a donation made up of dividends

How to claim Corporation Tax relief

In your company tax return you can deduct the amount of the donation from your profits.  When you make a donation to us you will always receive a thank you letter.  This letter should be kept for accounting purposes as it also acts as a receipt for your donation.

Whilst you can deduct donations from your profits, you can’t use a donation to create a loss.  You can’t carry your donation forward either, so it must be claimed against your profits in the financial year of your donation.