Sam Burne James reports that the number of CICs has already surpassed the number of cooperatives and mutuals registered in the UK and points out that this rapid growth is a sign that CIC status has been a success.
One failing of the structure that is highlighted is the lack of private profit that can be generated. Luke Fletcher, Head of Social Finance at Bates Wells Braithwaite says “changes to law governing the CIC dividend cap were approved last year” and that the structure needed to be updated. Luke also points out that, unlike for charities, there are no tax reliefs for a CIC itself. "Government ought to be looking at improving support for CICs, maybe through some sort of mandatory rates relief," he says. Luke also suggests that a lower rate of corporation tax should be considered.
Posted on 02/06/2015 in BWB In The MediaBack to Knowledge