Entertainment expenses - gifts of food and drink
The entertainment expense rules limit tax deductions for certain types of expenses to 50% of the cost.
One type of expense covered is the expense of providing food and drink off business premises.
This means that spending on things like chocolates or a bottle of wine to give as gifts to customers, clients or suppliers for example, is only 50% deductible.
If the items are purchased as a gift basket or together with other items that aren't food and drink, the expense must be apportioned between fully deductible and not fully deductible.