Share this content

Are CICs ( turnover <20k) subject to Taxation

CICs &amp; corporations tax

Didn't find your answer?

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)

Please login or register to join the discussion.

By Wilson Philips
17th Aug 2021 16:02


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.

Thanks (2)
Replying to Wilson Philips:
By Paul Crowley
17th Aug 2021 16:17

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

Thanks (2)
By lionofludesch
17th Aug 2021 16:30

CICs are more about asset protection than tax breaks.

Thanks (1)
Share this content