CT exemption for not for profit incorporated companies?
I understand that not for profit - limited by guarantee - companies may be exempt from Corporation Tax on their trading surplus. If this is the case how does the company apply for exemption? Does anyone know?
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
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.