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  • Corporation Tax for a CIC receiving donations

    Hello, We are a very small CIC with an annual income of around £14,000. Most of our income is from a grant from the National Lottery of £10,000, which was received in July 2021 and so is due to be fully used by July 2022. Our financial year runs from January 2021-January 2022. When I'm completing the tax return (CT600) in our accounting software (FreeAgent) it's showing that we will owe £890.72 in Corporation Tax, but if we pay this from the grant this means we won't be able to use the grant as intended. I don't think it counts as a donation as it says in the guidance, "This box is for relief on donations to charities, Community Amateur Sports Clubs (CASCs) and, grassroots sport" but we are a CIC and have no relation to sports. We are not sure how to proceed with completing the tax return, please can someone advise? Thanks,