Charity Donations

JoJoK Registered Posts: 2 New contributor 🐸

Just wondering if anyone can please advise! One of my clients (Ltd Company) makes regular donations to different charities, however they have asked if there is a limit on how much they can donate a year, and are there significant benefits to making lots of donations?

many thanks in advance!


  • wbauk2002
    wbauk2002 Registered Posts: 110 🎆 🐘 🎆
    From what I understand donations to UK registered charities can be used as an expense and reduce your corp tax bill, but I'm sure someone will correct me, not sure on the limit sorry
  • deborahcarpenter
    deborahcarpenter Registered Posts: 161 🎆 🐘 🎆
    Yes, if they are made under the gift aid scheme they can be used to reduce corporation tax liability. But they cannot be used to create a loss. As far as i know, there is no limit to gift aid donations.
    BIG WAL Registered Posts: 133 🎆 🐘 🎆
    Providing it's a donation and there's no benefit to the donor (in which case limits would apply), there are no limits to the amount. The company makes a claim in its CT Return to deduct the donation from its
    taxable profits.

    As pointed out, a donation cannot be used to create or increase a loss.

    Please note it's not a donation under the gift aid scheme. The charity is unable to make a repayment claim, as no tax has been paid by the Company on the amount of the donation.
  • JoJoK
    JoJoK Registered Posts: 2 New contributor 🐸
    Great advice, thanks very much!
  • ChrisRogers
    ChrisRogers Registered Posts: 1
    Ofcourse they have a benefits in terms of reducing taxation bills. There is no limit of donating money to poor people on a year. But it is a good quality and I am also donation to education charity as Ministries For The Help. This is a non profit organization that supports children who live in poverty. I love the children especially who are in below poverty.
  • TreadStone
    TreadStone AAT Licensed Accountant Posts: 280 💫 🐯 💫
    Wow, ancient thread revival !!! :o
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