Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Christmas gifts

17 January 2012
Issue: 4337 / Categories: Forum & Feedback
A business has given a crate of 12 bottles of wine to a valued client, in the hope that the client would give a bottle to each of his ten employees as a festive present

I am confused about the VAT rules in relation to Christmas gifts and wonder if readers can cast some light on this subject.

I have given an expensive crate of wine (12 bottles) to my best client and this cost me £300 plus VAT.

I gave it to him so that he could then (hopefully) give a bottle to each of his ten staff. The total gift is more than the £50 VAT limit but if each member of staff gets one bottle that works out as a gift of only £30 i.e. it is then below the limit. I have three specific questions as follows.

First regarding the gift limit do I look at the whole crate for the supplier or the individual bottles that I assume will be given to his employees?

Second is there any block for VAT purposes on claiming...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon