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In the pink

19 March 2013
Issue: 4395 / Categories: Forum & Feedback , Business , Capital allowances , Employees , Income Tax

A limited company intends to purchase a dog that will be used for promotional purposes. The animal will be taken home in the evenings and at weekends by one of the directors

Our client is called Pink Spaniel Ltd (names and breeds changed to protect the innocent). The owners do indeed have a pink spaniel (Wilbur) after which the company was named their logo is a pink spaniel and a pink spaniel appears on all their advertising materials.

Wilbur spends his days in the office and is well known to all the company’s clients. He also goes on all promotional activities. Unfortunately Wilbur is getting on a bit and our client has identified a young pink spaniel (Colin) to take Wilbur’s place in due course.

Wilbur works normal office hours and goes home in the evenings with one of the directors and the same will happen with Colin. There is no suggestion that Wilbur (or Colin) would take on the duties of a guard dog because this would be demeaning to him.

Our client proposes buying Colin through the...

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