§ Mr. Alfred Morris
asked the Chancellor of the Exchequer in how many EEC countries charitable donations by companies are deductible for tax purposes; what consideration he is giving to including the United Kingdom among their number; and if he will make a statement.
§ Mr Peter Rees
[pursuant to his reply, 7 November 1980, c. 700]: In most EC countries there are provisions which enable companies to deduct for tax purposes certain donations for broadly charitable purposes. The provisions vary widely and allowable contributions are normally subject to an annual limit or 48W to a specific percentage of turnover, net income or profit.
In the United Kingdom tax relief for a donation made by a company for charitable purposes will be allowed provided it is of a revenue nature and is incurred wholly and exclusively for the purposes of the trade. I have no plans to change this rule.