Donations to a CIC

Client is a Community Interest Company limited by guarantee (LBG) which has no share capital and cannot pay dividends. The CIC runs 2 choirs and organise arts events. They receive income from subscriptions from choir members, grants from the Arts Council and other foundations/charities, and also donations from members of the public. Are the donations they receive taxable income in respect of Corporation Tax?

Hi,
 

Under Corporation Tax Self-Assessment (CTSA) rules it is for your company to deceide whether a specific voluntary receipt (donation) is classed as taxable income or not.  You may wish to engage the services of an accountant to help you make a decision.  Guidance on this subject can be found in HMRCs Business Income Manual (BIM) at BIM41800 onwards .

Thank you .