Trade shows & exhibitions

Exhibition stand hire, event space fees, booth construction and display materials are allowable business promotion costs — trade shows are not business entertainment. However, the costs of food, drink and hospitality provided to visitors at the stand are disallowed as business entertainment, even if the event itself is a legitimate marketing exercise. Travel and accommodation to the show follow the normal business travel rules.

Sole traderAllowable

Ltd companyAllowable

EmployeeNot allowable

Conditions

Trade shows, exhibitions and promotional events arranged for the purpose of publicising a business's products or services are not in themselves business entertainment, and the direct costs of participating — stand hire, exhibition space rental, entry or registration fees, shell-scheme construction, display boards, signage, printed promotional materials and product demonstrations — are allowable business expenses. HMRC confirms in BIM45050 that 'promotional events arranged for the purpose of publicising a trader's products are not in themselves business entertainment.'
Food, drink and other hospitality provided at the event is treated differently. Where a business provides refreshments to visitors at its stand or hosts a drinks reception at the show venue, the cost of that food, drink or entertainment is disallowed as business entertainment under section 45 ITTOIA 2005 / section 1298 CTA 2009, regardless of the promotional context. The BIM45050 example given by HMRC illustrates this clearly: a car manufacturer's test drive event is allowable, but if the same event includes a golf day, the golf element is disallowed. The food and drink at the stand is the trade-show equivalent.
Product samples handed out at the show are allowable where they are genuine samples of goods the business sells, given to advertise the products publicly. Branded promotional items given away at the stand are subject to the usual gift rules: they must carry a conspicuous advertisement, must not be food or drink, and the total cost per recipient must not exceed £50 per tax year or accounting period (see branded-merchandise).
Travel to and from the exhibition — by car, rail, taxi or air — is an allowable business travel cost where the trade show qualifies as a temporary workplace. Accommodation for overnight stays required by the exhibition schedule is similarly allowable. These costs are governed by the normal business travel and subsistence rules, not the trade-show-specific rules.
A permanent contribution to an exhibition guarantee fund (a one-off endowment-style payment to secure a place in a major exhibition) may be capital rather than revenue if it confers an enduring benefit, and should be considered separately from annual participation fees. HMRC addresses this category of expenditure at BIM45305.
For limited companies, the corporation tax deduction follows the same allowability rules as for sole traders. If the company sends employees to staff the stand, their wages, NIC and reasonable travel are all deductible costs of the event.

Common mistakes

Including the bar tab or dinner for clients entertained at the show as part of the exhibition invoice — food and drink for visitors is disallowed business entertainment however the invoice is presented.
Treating trade show participation costs as capital because the stand design was expensive or the exhibition is prestigious — stand hire and display costs are revenue expenses unless they create a genuinely enduring physical asset (very rare).
Forgetting that promotional items given to visitors follow the branded-gifts rules: the £50/person/year limit and the conspicuous-advertisement condition still apply.
Claiming travel and accommodation at enhanced rates not actually incurred, or including personal tourism expenses added on to a trade-show trip.

What to keep

Invoice from the exhibition organiser showing the stand space, hire period and cost.
Receipts for stand construction, display materials and signage.
Travel and accommodation receipts with a note confirming the business purpose.
A separate record of any hospitality spend at the event (to ensure it is excluded from the business expense claim).

Real-world example

A sole trader attends a two-day industry trade show. She pays £900 for a 3m × 2m exhibition stand, £200 for roller banners and printed brochures, and £85 for train fares and one night's hotel. She also buys a round of drinks for five clients at the show bar, costing £60. The stand (£900), display materials (£200) and travel/accommodation (£85) are all allowable. The client drinks (£60) are disallowed business entertainment and must be excluded from her claim.

Frequently asked

Is a trade show stand an allowable revenue expense or a capital item?

A hired stand or exhibition space is almost always a revenue expense — you pay for temporary use of a space and return it at the end of the show. The cost is deductible in the period of the event. If you commission a bespoke modular stand that you own and reuse across many shows over several years, the initial construction cost could be capital (with subsequent use costs being revenue), but this scenario is uncommon.

Can I claim the cost of samples or freebies I hand out at my stand?

Genuine product samples — items that represent the goods you actually sell, given to advertise the business — are allowable. Branded promotional gifts (pens, tote bags, USB drives, etc.) are also allowable, provided they carry a conspicuous advertisement for the business, cost no more than £50 per recipient per year and are not food, drink, tobacco or vouchers. Food and drink samples are only deductible if they are genuine samples of what you sell (for example, a food producer handing out food) rather than hospitality.

We pay an annual exhibition membership fee and a separate stand hire charge — are both allowable?

Recurring annual fees to participate in an exhibition or trade body are almost always revenue and fully allowable. A permanent contribution to a guarantee fund — a one-off capital payment to secure a long-term place in a major exhibition — may be treated differently if it confers an enduring benefit, and should be reviewed carefully. Annual stand hire is revenue.

Not sure how this applies to you?

The rules shift with your circumstances. A qualified accountant can confirm what you can claim and handle it for you.

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Related allowances

Source: HMRC guidance · Last checked 18 June 2026

This page is general information based on HMRC published guidance, not tax advice. Status shown is a plain-English summary — your own position can differ. Always check the HMRC source above and speak to a qualified accountant before making a claim.