Grants and Corporation Tax

[Kaeren Mellin]

Hi There

 

I have a question for finance professionals working with CIC's.

 

If a CIC has grant income and trading income do you split it in their annual accounts and only calculate Corporation tax on the trading income.  I asked this question of a tax inspector and the reply seemed to be yes but would like re-assurance from those working in the field.

 

Many thanks

[Heidi Fisher]

In most cases this would apply, but you need to check the grant contracts to confirm the tax treatment of them, and whether they should be classed as trading income with an associated corporation tax liabiity.