HC Deb 25 July 1989 vol 157 c634W
Mr. Simon Coombs

To ask the Chancellor of the Exchequer what tax incentives are available to encourage commercial sponsorships of the arts and charities.

Mr. Norman Lamont

Sponsorship payments which are not of a capital nature are deductible for tax purposes in calculating trading profits if they are made wholly and exclusively for the purposes of the payer's trade. In practice, this means that the sole purpose of the payment must be to provide the payer with a benefit—often in the form of advertising—commensurate with his expenditure.

There are also special tax reliefs for business donations to charities.