Absolutely! A limited company can pay for an annual event, and there are no personal tax implications if the total does not exceed £150 per head and is open to all members of staff.
This doesn’t need to be one event either, just “annual”. So, you could have a Christmas Party and a Summer BBQ, and both would be allowable for Corporation Tax purposes provided the total of both doesn’t exceed the £150 per head limit (if it goes even £1 over then the whole amount, becomes a benefit in kind, so tread carefully). The costs can include food, drink, tickets to events, accommodation and a taxi fare home.
If you are VAT registered, under the standard rated scheme, then you can claim the VAT on staff entertaining (as long as VAT is charged on invoices presented) and the entertaining is solely for staff.