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Donating within the European Member States

European Court of Justice in January 2009 upheld a claim that tax-payers should be able to deduct gifts to charities established in other member states see case number C-318/07 and Judgment ECLI:EU:C:2009:33, stating that according to EU law anyone donating to a registered charity within the European Member States is entitled to a tax deduction for donations to charitable organizations inside the EU.

Are there any advantages for my business by giving to charity?

Limited Companies

When limited companies make one of the following gifts to charity or a community amateur sports club (CASC) they can claim tax relief and thus pay less corporation tax:

  • money;
  • equipment or trading stock (items it makes or sells);
  • land, property or shares in another company (shares in donating company’s own company don’t qualify);
  • employees (on secondment);
  • sponsorship payments.

This tax relief works differently than that for individuals, self employed sole traders and partnerships.

You can read more about the advantages of business donations, sponsors and gifts to Animal Rescue Algarve here.

Self Employed Sole Traders Individuals

Donations by individuals to charity or to community amateur sports clubs (CASCs) are tax free. This is called tax relief.

The tax goes to you or the charity. How this works depends on whether you donate:

This also applies to sole traders and partnerships. There are different rules for limited companies. Please see above.

If you want to donate to a sports club, check if it’s registered as a community amateur sports club (CASC). You can’t donate to a CASC through Payroll Giving.

You can read more about the advantages of Individual donations, sponsors and gifts to Animal Rescue Algarve here.