Business promotion schemes ― loyalty schemes

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the types of loyalty schemes that can be implemented together with the associated VAT issues.

See the Business promotion schemes ― overview guidance note for more information on the other types of business promotion schemes that can be used by businesses.

See De Voil Indirect Tax Service V6.169 and V3.409 for more detailed commentary.

What are loyalty schemes?

A number of organisations participate in loyalty programmes which are designed to improve customer loyalty and increase sales. They also offer businesses with a marketing tool because they can analyse customer information in order to target marketing campaigns, etc. There are a number of different schemes in operation, but the main aim is to link purchases made to a reward or a reduction in the price paid for subsequent purchases by issuing points.

The loyalty scheme can either be a simple scheme where the reward is given by the original supplier when the customer has accumulated sufficient points to cover the purchase or part purchase or a more complex

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more

Owner-Managed Businesses

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

UU��ֱ��