Taxation: Corporate Hospitality
Treasury
Written answers and statements, 2 November 2009
Jo Swinson (East Dunbartonshire, Liberal Democrat)
To ask the Chancellor of the Exchequer if he will publish guidance for businesses in respect of their tax liability for corporate entertainment in lap dancing clubs.
Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
holding answer
HM Revenue and Customs have published guidance on business entertainment on their Business Income Manual at BIM45000 (specific deductions: entertainment), available at:
www.hmrc.gov.uk/manuals/bimmanual/BIM45000.htm
No tax relief is available for client entertaining. The expenses incurred in entertaining clients at lap dancing clubs would not constitute an allowable deduction in computing a company's profits chargeable to corporation tax.