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Are CICs ( turnover <20k) subject to Taxation

CICs &amp; corporations tax

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Would a member please advise on this??
I would like to find out if small CICs( turnover less than £20k) are subject to corporation tax on its grant income.
The CIC is limited by guarantee & is registered in England.
All the income for the period are through donated grants and there is no trading activity.  The accounts are prepared with a net surplus of circa £2k.
Would this figure be subject to corp tax of 18% as other companies??
Your suggested advice will be highly appreciated.

Yours faithfully

Dickson Gyamfi

Sent from Dickson's  iPhone

Sent from Dickson's  iPhone

Replies (3)

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Psycho
By Wilson Philips
17th Aug 2021 16:02

18%?

Unless the company can demonstrate that it is a genuine not-for-profit organisation (difficult, given that one of the underlying conditions of a CIC is that it makes profits to return to the community) it is taxable just like any other company.

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Replying to Wilson Philips:
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By Paul Crowley
17th Aug 2021 16:17

Agree
No special treatment
I prefer to suggest a real charity to be a charity or Company limited by guarantee and registered as a charity
Way too many types of organisation on offer that are community benefit

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RLI
By lionofludesch
17th Aug 2021 16:30

CICs are more about asset protection than tax breaks.

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