BIM45074 - Specific deductions: entertainment: gifts: exceptions: gifts to employees
S46 Income Tax (Trading and Other Income) Act 2005, S1299 Corporation Tax Act 2009
Staff gifts are allowable
The cost of gifts provided to the employees of the trader is deductible from trading profits. This is the case as long as the gifts are not also provided to others and the gifts to the employees are not incidental to the provision of gifts for others. For further information, see BIM45033.