CIC Grant Income Tax Treatment

CIC client received a big lottery grant £10k for a specific project to deliver a one-off disability service which is free to the 'end user'.

The grant was given conditionally for the purpose of a specific project, the total sum of the grant was spent on the project, no service was provided to the grant-giver in return for the grant, and the grant did not cover any on-going or core business running costs.

I need to decide if the grant is non-taxable per se, therefore allow the related expenses to be offset against other trading, or, offset the expenses against the grant creating a trading beak-even for the project and tax purposes, with no losses generated for CT.

Thanks for any pointers.