ABOUT US
COMMUNITY INTEREST TEST
WHAT IS THE COMMUNITY INTEREST TEST AND WHAT IS IT MEANT TO ACHIEVE?
Community interest is the heart of the CIC and the community interest test is what differentiates CICs from other not-for-profit organisations. Demonstrating community interest is of value to those seeking grant funding or philanthropic investment.
To become a CIC, an organisation needs to satisfy the regulator that its purposes could be regarded by a reasonable person as being in the community or wider public interest. It will also be asked to confirm that access to the benefits it provides will not be confined to an unduly restricted group.
FINANCIAL INTEREST
DO CICs HAVE ANY SPECIAL TAX STATUS?
No, CICs will not enjoy any special tax status as such. They will generally be in the same position as any other organisation in obtaining any tax concessions or grants otherwise available, for example due to their type of activity or location. A charity which becomes a
CIC will lose its charity tax status.
Can community interest companies issue shares?
Yes, in order to raise investment, CICs limited by shares will have the option of issuing shares that pay a dividend to investors. In order to protect the asset lock, the dividend on these shares is subject to a cap set by the Secretary of State.
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WHAT IS THE COMMUNITY INTEREST TEST AND WHAT IS IT MEANT TO ACHIEVE?
Community interest is the heart of the CIC and the community interest test is what differentiates CICs from other not-for-profit organisations. Demonstrating community interest is of value to those seeking grant funding or philanthropic investment.
To become a CIC, an organisation needs to satisfy the regulator that its purposes could be regarded by a reasonable person as being in the community or wider public interest. It will also be asked to confirm that access to the benefits it provides will not be confined to an unduly restricted group.
FINANCIAL INTEREST
DO CICs HAVE ANY SPECIAL TAX STATUS?
No, CICs will not enjoy any special tax status as such. They will generally be in the same position as any other organisation in obtaining any tax concessions or grants otherwise available, for example due to their type of activity or location. A charity which becomes a
CIC will lose its charity tax status.
Can community interest companies issue shares?
Yes, in order to raise investment, CICs limited by shares will have the option of issuing shares that pay a dividend to investors. In order to protect the asset lock, the dividend on these shares is subject to a cap set by the Secretary of State.
Read More
<<< Back