Generally you cannot claim back the VAT on business entertainment expenses.
Mixed business entertainment expenses and other business expenses
You can only reclaim VAT on the proportion of your expenses that are not used for business entertainment and are used for business purposes. For example, if you entertain employees and customers together, you may be able to reclaim VAT on the proportion of expenses that relate to employee entertainment - see the section in this guide on employee entertainment and expenses.
But you cannot reclaim any VAT at all if the sole purpose of the business entertainment is to entertain a non-employee - for example, if you or your employees act as a host to a non-employee.
Generally you cannot claim back the VAT on business entertainment expenses.
Mixed business entertainment expenses and other business expenses
You can only reclaim VAT on the proportion of your expenses that are not used for business entertainment and are used for business purposes. For example, if you entertain employees and customers together, you may be able to reclaim VAT on the proportion of expenses that relate to employee entertainment - see the section in this guide on employee entertainment and expenses.
But you cannot reclaim any VAT at all if the sole purpose of the business entertainment is to entertain a non-employee - for example, if you or your employees act as a host to a non-employee.
http://www.hmrc.gov.uk/vat/managing/reclaiming/entertainment.htm#4
Then there's this which I can't make any sense of..
http://www.hmrc.gov.uk/paye/exb/a-z/e/entertainment.htm#1