CT exemption for not for profit incorporated companies?

Use a deed of covenant

The traditional solution for this is for the trading company to covenant all its taxable profits to the sponsoring charity. There may be simpler or more flexible ways.

Have I missed something?

I cannot see anything in the question about trading and charities, but the deed of covenant route does work if there is a trading company.

However, if it is a property management company which is due to pay less than £100 of corporation tax a year and meets the conditions set out in http://www.hmrc.gov.uk/ctsa/small-tax-liabilities.htm Clubs, unincorporated associations and property management companies: Small tax liabilities, you should apply to your CT office to be treated as dormant for CT purposes.

The fact that it is a company limited by guarantee is not relevant.

Euan MacLennan

Need to know more about nature of company's activities

I assumed - perhaps wrongly - that "not-for profit" meant charitable. The default position is that trading surpluses are taxable, hence the deed of covenant solution. The exemption for small management companies is a useful concession.

One potential exemption is "mutual trading" if the majority of trading is with the company's members. See http://www.hmrc.gov.uk/manuals/bimmanual/bim24000.htm.