If a company is making a profit it can make charitable donations and get relief against corporation tax. It should claim the total donations made in the accounting period on the corporation tax return for that period. However, the deduction of donations cannot change a taxable profit into a loss, or increase a taxable loss. In those cases there is no tax relief for the donations. Although, if the company is part of a group of companies, the relief for the excess donations may be passed to another member of the group.
The recipient charity cannot claim gift aid relief on the company’s donation