§ Mr. MitchellTo ask the Chancellor of the Exchequer what tax deduction has been made available for sponsorship of the Millennium Experience; and what estimate he has made of the cost to the Exchequer in lost revenue. [48830]
573W
§ Dawn PrimaroloWhen calculating business profits for tax purposes, the general rule is that a deduction is allowable for tax purposes where expenditure is revenue in nature and incurred wholly and exclusively for trade purposes. This rule applies to sponsorship payments, as it does to business expenditure generally. The availability of a tax deduction for business expenditure on sponsorship payments when calculating business profits will always depend on the particular factors of the donor business. No information is available about sponsorship payments to the Millennium Experience qualifying as a deduction for tax purposes, or of the cost of the tax relief.