Corporation Tax and donations

Corporation Tax and donations

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The company in question is a social enterprise registered as a company limited by guarantee. 

The aim of the company is to sustain the publicly accessible mountain bike trails in a defined region of the UK, t maintain and increase the socio-economic benefit of said trails to the local area. 

To date the company has not been trading but it has received donations via donation boxes and paypal. The company intends developing a visitor giving scheme where users of the mountain bike trails make voluntary donations.

The question is:  are the voluntary donations taxable income?

Many thanks for your help

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By WhichTyler
30th Jun 2015 11:58

Possibly

See cases at http://www.hmrc.gov.uk/manuals/bimmanual/bim41810.htm

Are they planning to trade or just ask for voluntary donations? If the latter it would be better to seek charitable status. 

Rant: 'Social enterprise' is a fashionable term, but if there is no viable business there, it isn't an enterprise, and may fail to fulfill its social function too...

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