Readers’ forum: Sponsorship

My client runs a successful van hire business in a large midlands town. As might be expected almost all of its customers are from the local area. My client’s company is intending to sponsor some show jumping events around the country and it will come as no surprise to some that his daughter is a horse rider who may be competing in some of these events. He has asked me about tax relief for the sponsorship.

I said that a claim would be almost certain to fail on the basis that an event in say the south west of England is unlikely to create customers for a local business in the midlands. The purpose of the expenditure would be to support his daughter’s horse-riding activities rather than promote the van business. He accepts this but has asked about the expenditure on more local events where...