When calculating the value of sponsorship, the full amount of the payment received should be taken into account and reported when it meets the reporting thresholds.
No deduction for any commercial value, or any benefit to the sponsor, should be made.
Fundraising events and dinners
If an event is hosted by or on behalf of your organisation, support to help meet the costs of the event must be treated as sponsorship.
For example, for payments for a place or table at a dinner, the difference between the value of the dinner and the amount paid is a donation.
Treatment of VAT
Where a sponsorship payment includes VAT, the question of whether the VAT element should be reported as part of the sponsorship will depend on the facts. For instance, if the party would have been liable for the VAT if it had not been paid, then its payment is a benefit to the party and should be reported as sponsorship.
Sponsorship by companies
Where a company makes a payment that is treated as sponsorship, the entire amount is considered a donation under electoral law.
Companies will therefore need to ensure that they have complied with any applicable controls on making a political donation under company law.