Readers’ forum: Should holiday product testing be taxable?

We have recently taken on a corporate client whose trade concerns acting as an agent to provide its customers with what might be described as ‘high end’ holiday and adventure trips and experiences.

Our query concerns the costs the company incurs on researching these products: from time to time certain employees will trial these products which the company then markets on behalf of the main suppliers. In some cases all the cost will be borne by the company; and in other cases some or all may be borne by the main supplier simply to encourage our client to include them on the list of products that it markets.

From the company’s perspective we feel that whatever costs it bears should be allowable for corporation tax as these are costs the company believes it needs to incur to ensure as best it can the quality and attraction of...