The Government proposes to allow businesses to make donations of their trading stock to recognised charities.
Normally, if goods are taken out of a business, they need to be valued at their market value. Tax needs to be paid on the difference between market value and cost, which is the profit.
However, from 1 April 2024, it is proposed these donations can be made at their cost price, which means the business does not have to account for any profit on the goods given away.
